Difference between revisions of "Core competence"
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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: | |
| + | * Valuable | ||
| + | ** Customers have to be willing to pay for the value a core competence represents (lower costs or customer benefit) | ||
| + | * Unique | ||
| + | ** If a competence is not unique competition will drive down profits. | ||
| + | * Hard to imitate | ||
| + | ** A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence: | ||
| + | *** Require tightly interlinked function within a firm | ||
| + | *** Causal ambiguity increases barriers to imitation. This is if the roots of the competence are hard to understand | ||
| + | * Valuable across different products or markets | ||
| + | |||
| + | <html> | ||
| + | <img src="/static/files/MBI/Module%206/competencesandproducts.PNG" width = 500> | ||
| + | </html> | ||
| + | |||
| + | Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis|M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]] | ||
| + | |||
| + | See also: | ||
| + | [[M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation|M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation]] | ||
| + | [[M6-S4 - Session notes|M6-S4 - Session notes]] | ||
[[Category:marketing]] | [[Category:marketing]] | ||
Latest revision as of 19:48, 27 August 2020
A core competence of a firm is a Competence which is valuable across different products and markets, unique and hard to imitate:
- Valuable
- Customers have to be willing to pay for the value a core competence represents (lower costs or customer benefit)
- Unique
- If a competence is not unique competition will drive down profits.
- Hard to imitate
- A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence:
- Require tightly interlinked function within a firm
- Causal ambiguity increases barriers to imitation. This is if the roots of the competence are hard to understand
- A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence:
- Valuable across different products or markets
Part of M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis
See also: M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation M6-S4 - Session notes
