The document discusses core competency and competitive advantage. It defines core competency as critical skills and expertise that allow an organization to create new products for customer needs. Developing a strategic architecture and identifying core competencies can help consolidate skills and bind existing and new businesses. For sustained competitive advantage, an organization's core competencies should be valuable, rare, difficult to imitate, and leveraged through complementary organizational resources.

1. Core Competency & Competitive Advantage Ali Sadhik Shaik [email_address] sadhiqali.blogspot.com

2. Agenda Core Competency -- Roots Of Competitive Advantage -- Developing Strategic Architecture -- Identification Of Core Competency. Competitive Advantage

3. Core Competence of the Corporation

4. Core competency… Critical task Of management- Creating products of customer needs but not yet imagined Harmonizing streams of technology and delivery of values Collective learning in the Organization Competency = innovative minds + Skill full expertise hands = New Product

5. Roots Of Competitive Advantage Consolidate corporate wide tech. & production skills Binds the existing business & a engine of new business development Involvement & a deep commitment to work across organizational boundaries

6. Developing Strategic Architecture A road map of the future Consistency in resource allocation & development of appropriate administrative infrastructure Cannot be copied by competitors

7. Identification Of Core Competency Potential access to wide variety of market Contribute to the perceived customer benefits Should be difficult to imitate

8. Conclusion "Capabilities are considered core if they differentiate a company strategically." “ A core competency differentiates not only between firms but also inside a firm it differentiates amongst several competencies. In other words, a core competency guides a firm recombining its competencies in response to demands from the environment."

9. Looking inside for Competitive Advantage

10. Internal Blanks of SWOT The Question of Valve The Question of Rareness The Question of Imitability The Question of Organization

11. The Question of Valve Understand firm’s resources and capabilities in adding value Constant evaluation in changing competitive environment Ex: Sony, 3M. Resources and Capabilities differ from company to company Ex: Rolex and Timex

12. The Question of Rareness Firm’s unique internal attributes “ How many competing firms already posses these valuable resources and capabilities?” Ex: Domino’s and Pizza Hut DELL and HP

13. The Question of Imitability Duplication and Substitution The importance of history Ex: Caterpillar and Komatsu The importance of small decisions Ex: Mail box Inc The importance of socially complex resources. Ex: Sony, HP

14. The Question of Organization Complementary resources of org. “ Is a firm organized to exploit the full competitive potential of its resources and capabilities?” Limited ability to generate competitive advantage.

15. Related case Competitive implications of the “Cold Wars” Competitive Position of the Macintosh Computer

16. Conclusion “ If you don't have a competitive advantage, don't compete.” -- Jack Welch “ The ability to learn faster than your competitors may be only sustainable competitive advantage.” --Arie De Geus