Core Competency

Core Competency PRESENTED BY- AMRIT NAYAK SEC-A ROLL NO- 11

The Prescriptive Strategy Process Mission & Goals Internal Capabilities

External Environment

Strengths & Weaknesses

Opportunities & Threats

Objectives Strategy Implementatio n Control © Dr Bruce Cronin

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WE ARE GOING TO DISCUSS ABOUT:

Sustainable Competitive Advantage 



Core Competence

Improving Competitive Advantage

Core Competence A group of production skills & technologies that enable an organisation to provide a particular benefit to customers   

Generators of customer value Extendable Distinctive

Core Competence Examples 

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Glaxo Wellcome – pharmacetucial solutions for home and public health. Honda - developing fuel-efficient, reliable, and responsive small engines and drives.

Limitations  

Difficult to identify Emphasis on skills, knowledge & technology overlooks value of rentattracting resources

Hierarchy of Capabilities Current product-market profile

1. 

what we’re selling, whom we are selling to and what superior customer value we are offering.

Identification of sources of competitive advantage

2.



why customers choose our products over competitors’

Organisational capabilities and competencies

3. 

resources & skills contributing to this competitive advantage.

Evaluation of the most important competencies

4.

 

extendibility distinctiveness

VRIO Framework 

Valuable 

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Rare 

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is the resource distinctive to the firm?

Imitatable 

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does the resource add value or reduce the cost of creating value?

is the resource costly to imitate?

Organizational capacity 

does the organisation have the capacity to use the resource

Improving Competitive Advantage Benchmarking

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Systematic comparison of practices with another organisation

Leveraging existing resources

     

Concentration – targeting resources Conservation – reducing waste, recycling Accumulation – of skills and knowledge Complementarity - seeking synergies Recovery – convert resources into cash quickly

Upgrading resources

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Enhance weak resources – eg. upgrade equipment Complement existing resources - eg. branding Complimentary activities - eg. farming to tourism

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