The old concept of the diversified corporation is a portfolio of strategic business units (SBU’s) within a similar product or customer category. Each SBU’s goal is to put competitive products on the shelf today .
Today’s corporation must maintain competitiveness by developing core competencies. These competencies determine the strategic architecture of the firm. Competencies must translate into core products, which significantly contribute to the firm’s end products.
Gary Hamel and C. K. Prahalad, (1990) "The Core Competence of the Corporation", Harvard Business Review , vol. 68, no. 3, May-June 1990, pp 79-93.
Galunic, D.C. and Rodan, S. (1998). "Resource recombinations in the firm: knowledge structures and the potential for Schumpeterian innovation". Strategic Management Journal vol 19. p. 1193-1201.
Mascarenhas, B., Baveja, A., and Jamil, M. (1998) "Dynamics of Core Competencies in Leading Multinational Companies", California Management Review , vol 40, no. 4, pp. 117-132.
"Core Competencies." QuickMBA . Internet Center for Management and Business Administration, Inc. 18 Nov. 2005 <http://www.quickmba.com/strategy/ core-competencies/>.
Gamonal, Paula. "Core Competencies Working Smarter, Not Harder." Ravenwerks . Ravenwerks. 21 Nov. 2005 <http://www.ravenwerks.com/leadership/ core_competencies.htm>.