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| − | A core competence of a firm is a [[Competence|Competence]] which is valuable across different products and markets, unique and hard to imitate:
| + | Core competence |
| − | * Valuable
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| − | ** Customers have to be willing to pay for the value a core competence represents (lower costs or customer benefit)
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| − | * Unique
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| − | ** If a competence is not unique competition will drive down profits.
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| − | * Hard to imitate
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| − | ** A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence:
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| − | *** Require tightly interlinked function within a firm
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| − | *** Causal ambiguity increases barriers to imitation. This is if the roots of the competence are hard to understand
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| − | * Valuable across different products or markets
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| − | <html>
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| − | <img src="/static/files/MBI/Module%206/competencesandproducts.PNG" width = 500>
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| − | </html>
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| − | Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis|M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]]
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| − | See also:
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| − | [[M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation|M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation]]
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| − | [[M6-S4 - Session notes|M6-S4 - Session notes]]
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| | [[Category:marketing]] | | [[Category:marketing]] |
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