Core competency is a concept introduced by C.K. Prahalad and Gary Hamel referring to a firm's coordination of diverse production skills and technologies. Core competencies provide potential access to markets, contribute to customer benefits, and are difficult for competitors to imitate. They are the roots of competitive advantage and involve coordination across boundaries. Identifying core competencies involves considering factors like market access, customer benefits, and imitability. Case studies of Honda and Black & Decker show how core competencies like engines and electric motors link to a variety of end products. Managing core competencies and allocating resources accordingly is important for corporate strategy.
The Fallacy Of Prahalad and Hamel's Core Competency - Aditya YadavAditya Yadav
This document discusses the flaws in the theory of core competencies as proposed by Prahalad and Hamel. It argues that focusing solely on core competencies is too inward looking and can lead to strategic irrelevance if customer needs change. It also notes that the age of specialists is over and that organizations need to be specialized generalists to provide end-to-end solutions. Additionally, focusing only on core competencies can prevent companies from making the jump to new technology cycles, potentially leading them to lose their leadership position over time. The document advocates that companies should focus not just on core areas but also allocate resources to related and some unrelated areas to maintain competitiveness.
This document discusses managing core competencies in software organizations. It defines core competencies as unique skills and assets that differentiate a company, fuel innovation, and provide competitive advantage. Core competencies are enhanced over time and help guide make-or-buy decisions. They form the root system that nourishes end products, like leaves and fruit on a tree. The document uses Microsoft as a case study, identifying its core competencies in operating systems and business solutions that generate most of its revenue. It stresses the importance of identifying, developing, and protecting core competencies for long-term strategic success.
This document discusses the concept of core competencies and how they differ from a business unit approach. It argues that companies should be organized around core competencies rather than business units in order to build world leadership in key technologies. A core competency is a bundle of skills and technologies that provide competitive advantage. Management needs to define a strategic architecture that identifies which competencies to build. This allows for more efficient allocation of resources across business units and reduces costs compared to independent units. Focusing on competencies rather than individual businesses also leads to more innovation and new market opportunities.
This document discusses core competencies and how they are essential for competitive advantage. It defines core competencies as skills, assets, and capabilities that differentiate a company and fuel innovation. Core competencies determine a company's strategic architecture and should be developed into core products that significantly contribute to customer benefits. The document provides examples of companies like Honda and Canon that structure their organizations around core competencies and continuously develop new products using these competencies. It stresses that companies should focus on building and improving their core competencies for long-term success.
Core competencies are the skills and assets that differentiate a company from its competitors. This document discusses how identifying core competencies allows companies like Microsoft to develop strategic architectures and product lines. It provides the example of how Microsoft's core competencies in operating systems and business solutions generate the majority of its revenue. The document advocates that companies should focus on constantly building and improving their core competencies to provide competitive advantages through innovation.
Strategic Management models and diagrams for professional business presentation.
More downloadable business diagrams on
http://www.drawpack.com
your visual business knowledge
The document discusses the concept of core competencies as presented by Prahalad and Hamel. It defines core competencies as unique bundles of skills that are sources of competitive advantage. It argues companies should shift focus from managing business units to identifying, building, and leveraging core competencies across business units. This requires strategic architectures to guide competency development and consistency in allocating resources. Developing core competencies better positions companies for long-term leadership rather than short-term gains from individual business units.
The document discusses the concept of core competence as developed by Prahalad and Hamel. It defines core competence as the consolidation of technologies and skills that allow a company to adapt quickly to opportunities. Core competencies provide competitive advantages through new market invention, innovative products, and difficult-to-imitate assets. The document outlines how to identify, commit to, and sustain core competencies through alliances, acquisitions, and an organization-wide roadmap. It contrasts traditional business unit models with core competence models that favor corporate integration and innovation over unit autonomy.
The Fallacy Of Prahalad and Hamel's Core Competency - Aditya YadavAditya Yadav
This document discusses the flaws in the theory of core competencies as proposed by Prahalad and Hamel. It argues that focusing solely on core competencies is too inward looking and can lead to strategic irrelevance if customer needs change. It also notes that the age of specialists is over and that organizations need to be specialized generalists to provide end-to-end solutions. Additionally, focusing only on core competencies can prevent companies from making the jump to new technology cycles, potentially leading them to lose their leadership position over time. The document advocates that companies should focus not just on core areas but also allocate resources to related and some unrelated areas to maintain competitiveness.
This document discusses managing core competencies in software organizations. It defines core competencies as unique skills and assets that differentiate a company, fuel innovation, and provide competitive advantage. Core competencies are enhanced over time and help guide make-or-buy decisions. They form the root system that nourishes end products, like leaves and fruit on a tree. The document uses Microsoft as a case study, identifying its core competencies in operating systems and business solutions that generate most of its revenue. It stresses the importance of identifying, developing, and protecting core competencies for long-term strategic success.
This document discusses the concept of core competencies and how they differ from a business unit approach. It argues that companies should be organized around core competencies rather than business units in order to build world leadership in key technologies. A core competency is a bundle of skills and technologies that provide competitive advantage. Management needs to define a strategic architecture that identifies which competencies to build. This allows for more efficient allocation of resources across business units and reduces costs compared to independent units. Focusing on competencies rather than individual businesses also leads to more innovation and new market opportunities.
This document discusses core competencies and how they are essential for competitive advantage. It defines core competencies as skills, assets, and capabilities that differentiate a company and fuel innovation. Core competencies determine a company's strategic architecture and should be developed into core products that significantly contribute to customer benefits. The document provides examples of companies like Honda and Canon that structure their organizations around core competencies and continuously develop new products using these competencies. It stresses that companies should focus on building and improving their core competencies for long-term success.
Core competencies are the skills and assets that differentiate a company from its competitors. This document discusses how identifying core competencies allows companies like Microsoft to develop strategic architectures and product lines. It provides the example of how Microsoft's core competencies in operating systems and business solutions generate the majority of its revenue. The document advocates that companies should focus on constantly building and improving their core competencies to provide competitive advantages through innovation.
Strategic Management models and diagrams for professional business presentation.
More downloadable business diagrams on
http://www.drawpack.com
your visual business knowledge
The document discusses the concept of core competencies as presented by Prahalad and Hamel. It defines core competencies as unique bundles of skills that are sources of competitive advantage. It argues companies should shift focus from managing business units to identifying, building, and leveraging core competencies across business units. This requires strategic architectures to guide competency development and consistency in allocating resources. Developing core competencies better positions companies for long-term leadership rather than short-term gains from individual business units.
The document discusses the concept of core competence as developed by Prahalad and Hamel. It defines core competence as the consolidation of technologies and skills that allow a company to adapt quickly to opportunities. Core competencies provide competitive advantages through new market invention, innovative products, and difficult-to-imitate assets. The document outlines how to identify, commit to, and sustain core competencies through alliances, acquisitions, and an organization-wide roadmap. It contrasts traditional business unit models with core competence models that favor corporate integration and innovation over unit autonomy.
Core competency is a concept in management theory introduced by, C. K. PRAHALAD and GARY HAMEL.
It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace“
Core competency are the skills, characteristics, and assets that set your company apart from competitors.
They are the fuel for innovation and the roots of competitive advantage.
The engine for new business development, underlying component of a company’s competitive advantage created from the coordination, integration and harmonization of diverse skills and multiple streams of technologies.
This document discusses core competencies and competitive advantage. It defines a core competency as a unique skill or expertise that provides benefits to customers and is difficult for competitors to imitate. It then provides examples of Apple's core competency in user interfaces and Walmart's in low prices. Competitive advantage is gaining an edge over rivals through lower costs or differentiation. The document outlines Porter's four generic strategies: cost leadership, differentiation, cost focus, and differentiation focus. It explains each strategy and how firms can achieve a competitive advantage.
Management Strategy: The Core Competence of the Corporation.
Based on Harvard Business Review with same title article written by C.K. Prahalad and Gary Hamel
The document discusses how small businesses can identify their core competencies to gain a competitive advantage. It defines core competencies as skills that provide access to markets, contribute significantly to customer value, and are difficult for competitors to imitate. Core competencies can be grouped into larger "meta-competencies". The document provides frameworks for businesses to analyze their skills, resources, and capabilities to discover their core competencies and meta-competencies in order to achieve sustained competitive advantage through continual evaluation and development of these competencies.
Final international marketing presentationAfzaal Ali
This document discusses the concept of core competencies and how they contribute to competitive advantage. It provides examples of how Japanese companies like NEC identified and built upon their core competencies in technologies like semiconductors and telecommunications to grow significantly between 1980 and 1988, while American companies like GTE that did not focus on core competencies fell behind. The key lessons are that companies must identify their core competencies, invest in building them up, and use strategic architectures to guide competence acquisition and new business development in order to secure long-term competitiveness.
The core competence of the corporation pptSouravRoy148
This document discusses the concept of core competencies as introduced by Prahalad and Hamel. It provides examples of how companies like Canon and NEC developed core competencies in areas like technology and production skills that provided long-term competitive advantages. The document also discusses how core competencies can be identified based on their potential for wide market access, contribution to products, and difficulty to imitate. It notes companies must cultivate, not just spend on, core competencies and avoid losing them through outsourcing or failing to pursue new opportunities.
This document discusses the importance of core competencies for companies. It defines core competencies as unique skills and assets that differentiate a company from its competitors. The document advises companies to identify their core competencies by compiling lists of capabilities they excel at and past successful products. It also provides tests for core competencies, stating they should provide access to diverse markets, contribute significantly to customer benefits, and be difficult for competitors to imitate. The document uses Maruti Suzuki as a case study, identifying its core competencies as manufacturing small, fuel-efficient cars that are priced effectively and have strong customer trust. It stresses that companies should structure their organization, products, and long-term goals around developing and leveraging their core
Course - Online Mini MBA (Free)
Register - http://www.mybskool.com/100-day-mini-mba.php?course=FreeCourse
Core competence and strategic advantage
By Dr.Ashvini Ravi
Associate Dean – Academics
myBskool.com
This document provides an executive summary of the core article "The Core Competence of the Corporation" by Prahalad & Hamel. It summarizes the key ideas of the article, including that companies should focus on building core competencies rather than individual business units, and that core competencies provide sustainable competitive advantage through enabling new products and easy adaptation to market changes. It contrasts NEC, which strategically built core competencies, with GTE, which lacked a clear focus on competencies.
Core competency- A topic in Strategic ManagementArjitSharma19
The concept of core competency was introduced by Prahalad and Hamel, referring to a company's key abilities or strengths that provide a competitive advantage. To be considered a core competency, the ability must be difficult for competitors to imitate, improve the company's position, and be applicable throughout the organization. Core competencies are unique expertise that create customer value and can be leveraged in new markets.
Apple's core competencies are their design and technology innovation. They introduce new product categories like the iPod, iTunes, iPad, and iPhone that revolutionize existing markets. Apple charges premium prices for its innovative, high quality products.
Time Warner focuses on low cost operations through efficient processes and technologies to maintain low prices and strong customer relationships.
Federal Bank ensures good banking practices through excellent customer service, transactions, and risk management.
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Core Competency Analysis Powerpoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of nineteen slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below.
Identifying Core-Competencies of a Corporation: Learning from ToyotaANSHUL GUPTA
This document discusses identifying and developing core competencies of corporations by learning from Toyota's strategies. It begins with defining the criteria for something to be considered a core competency. It then explains five strategies adopted by Toyota to become a leading carmaker: continuous improvement (Kaizen), Just-In-Time production, suggestion systems, Kanban pull system, and customer focus. The document discusses how companies like Tata Motors and Titan have implemented some of these strategies. It provides a framework for developing core competencies and applies this to the Management Development Institute to identify areas of focus. The document concludes by emphasizing the importance of defining the right core competencies based on evidence rather than intuition.
This document contains a case study analysis of Dell Computer Corporation conducted by a group of students. It identifies 11 key issues related to Dell's strategy, including their focus on product customization, direct distribution model, inventory management practices, and customer service offerings. It also outlines 3 strategic decisions Dell's leadership needed to make regarding balancing product emphasis, entering the server market, and pursuing international expansion. The group provides their perspective on each issue and recommends Dell focus on multiple product categories, enter the emerging laptop and server spaces, but avoid international expansion at that time.
Dell Corporation achieved success by focusing on internal efficiency, low inventories, and competitive pricing. It has maintained the largest share of the computer market since 1991 by continuously collecting customer feedback and customizing products. Dell's strategy is to keep costs low through efficient operations with little manufacturing, retail, or production costs. This allows it to offer competitive prices. However, the document expresses concern that by not substantially updating products or developing new technologies, Dell risks losing customers to competitors that offer more modern options. It recommends Dell invest in product improvements and personalization to strengthen its position.
Competitive Advantage And Core Competenciespriyanka
The document discusses competitive advantage, core competencies, and various corporate strategies. It provides definitions and concepts related to competitive advantage, core competencies, and strategies such as amalgamation, merger, demerger, slump sale, takeover, disinvestment, joint venture, and franchising. Core competencies are unique skills or expertise that provide competitive advantages and allow companies to access new markets. Effective strategies allow companies to optimize their business portfolio.
1) Companies are looking beyond their core business to achieve growth through new areas that account for 42% of revenues by 2020.
2) Top innovators obtain a higher percentage of revenues from new products/services and break even faster than competitors. However, it is becoming increasingly difficult to stay ahead.
3) A framework called the Growth Accelerator Program helps companies create a shared vision for growth, find new growth opportunities, and deliver growth through roadmaps, pilots, and ensuring the right organization and culture.
This document discusses core competencies and dynamic capabilities. It defines core competencies as the abilities that differentiate a company strategically and arise from combining multiple skills. To identify core competencies, the document outlines tests like whether a competency provides unique value to customers, spans multiple businesses, and is difficult for competitors to imitate. It notes that few firms have more than five or six core competencies and that focusing on these allows companies to better create value and develop new opportunities.
Core competencies are a firm's unique skills and abilities that distinguish it in the marketplace. They fulfill three criteria: provide access to markets, contribute significantly to customer benefits, and are difficult for competitors to imitate. The document discusses how core competencies facilitate strategy, innovation, and competitive advantage. It provides examples of companies like Apple, 3M, and Starbucks that have differentiated themselves through core competencies. The core competence model outlines how resources, capabilities, competitive advantage, and strategy are related. Management must identify and build upon a company's core competencies to develop successful long-term strategies.
Core competency is a concept in management theory introduced by, C. K. PRAHALAD and GARY HAMEL.
It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace“
Core competency are the skills, characteristics, and assets that set your company apart from competitors.
They are the fuel for innovation and the roots of competitive advantage.
The engine for new business development, underlying component of a company’s competitive advantage created from the coordination, integration and harmonization of diverse skills and multiple streams of technologies.
This document discusses core competencies and competitive advantage. It defines a core competency as a unique skill or expertise that provides benefits to customers and is difficult for competitors to imitate. It then provides examples of Apple's core competency in user interfaces and Walmart's in low prices. Competitive advantage is gaining an edge over rivals through lower costs or differentiation. The document outlines Porter's four generic strategies: cost leadership, differentiation, cost focus, and differentiation focus. It explains each strategy and how firms can achieve a competitive advantage.
Management Strategy: The Core Competence of the Corporation.
Based on Harvard Business Review with same title article written by C.K. Prahalad and Gary Hamel
The document discusses how small businesses can identify their core competencies to gain a competitive advantage. It defines core competencies as skills that provide access to markets, contribute significantly to customer value, and are difficult for competitors to imitate. Core competencies can be grouped into larger "meta-competencies". The document provides frameworks for businesses to analyze their skills, resources, and capabilities to discover their core competencies and meta-competencies in order to achieve sustained competitive advantage through continual evaluation and development of these competencies.
Final international marketing presentationAfzaal Ali
This document discusses the concept of core competencies and how they contribute to competitive advantage. It provides examples of how Japanese companies like NEC identified and built upon their core competencies in technologies like semiconductors and telecommunications to grow significantly between 1980 and 1988, while American companies like GTE that did not focus on core competencies fell behind. The key lessons are that companies must identify their core competencies, invest in building them up, and use strategic architectures to guide competence acquisition and new business development in order to secure long-term competitiveness.
The core competence of the corporation pptSouravRoy148
This document discusses the concept of core competencies as introduced by Prahalad and Hamel. It provides examples of how companies like Canon and NEC developed core competencies in areas like technology and production skills that provided long-term competitive advantages. The document also discusses how core competencies can be identified based on their potential for wide market access, contribution to products, and difficulty to imitate. It notes companies must cultivate, not just spend on, core competencies and avoid losing them through outsourcing or failing to pursue new opportunities.
This document discusses the importance of core competencies for companies. It defines core competencies as unique skills and assets that differentiate a company from its competitors. The document advises companies to identify their core competencies by compiling lists of capabilities they excel at and past successful products. It also provides tests for core competencies, stating they should provide access to diverse markets, contribute significantly to customer benefits, and be difficult for competitors to imitate. The document uses Maruti Suzuki as a case study, identifying its core competencies as manufacturing small, fuel-efficient cars that are priced effectively and have strong customer trust. It stresses that companies should structure their organization, products, and long-term goals around developing and leveraging their core
Course - Online Mini MBA (Free)
Register - http://www.mybskool.com/100-day-mini-mba.php?course=FreeCourse
Core competence and strategic advantage
By Dr.Ashvini Ravi
Associate Dean – Academics
myBskool.com
This document provides an executive summary of the core article "The Core Competence of the Corporation" by Prahalad & Hamel. It summarizes the key ideas of the article, including that companies should focus on building core competencies rather than individual business units, and that core competencies provide sustainable competitive advantage through enabling new products and easy adaptation to market changes. It contrasts NEC, which strategically built core competencies, with GTE, which lacked a clear focus on competencies.
Core competency- A topic in Strategic ManagementArjitSharma19
The concept of core competency was introduced by Prahalad and Hamel, referring to a company's key abilities or strengths that provide a competitive advantage. To be considered a core competency, the ability must be difficult for competitors to imitate, improve the company's position, and be applicable throughout the organization. Core competencies are unique expertise that create customer value and can be leveraged in new markets.
Apple's core competencies are their design and technology innovation. They introduce new product categories like the iPod, iTunes, iPad, and iPhone that revolutionize existing markets. Apple charges premium prices for its innovative, high quality products.
Time Warner focuses on low cost operations through efficient processes and technologies to maintain low prices and strong customer relationships.
Federal Bank ensures good banking practices through excellent customer service, transactions, and risk management.
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Core Competency Analysis Powerpoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of nineteen slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below.
Identifying Core-Competencies of a Corporation: Learning from ToyotaANSHUL GUPTA
This document discusses identifying and developing core competencies of corporations by learning from Toyota's strategies. It begins with defining the criteria for something to be considered a core competency. It then explains five strategies adopted by Toyota to become a leading carmaker: continuous improvement (Kaizen), Just-In-Time production, suggestion systems, Kanban pull system, and customer focus. The document discusses how companies like Tata Motors and Titan have implemented some of these strategies. It provides a framework for developing core competencies and applies this to the Management Development Institute to identify areas of focus. The document concludes by emphasizing the importance of defining the right core competencies based on evidence rather than intuition.
This document contains a case study analysis of Dell Computer Corporation conducted by a group of students. It identifies 11 key issues related to Dell's strategy, including their focus on product customization, direct distribution model, inventory management practices, and customer service offerings. It also outlines 3 strategic decisions Dell's leadership needed to make regarding balancing product emphasis, entering the server market, and pursuing international expansion. The group provides their perspective on each issue and recommends Dell focus on multiple product categories, enter the emerging laptop and server spaces, but avoid international expansion at that time.
Dell Corporation achieved success by focusing on internal efficiency, low inventories, and competitive pricing. It has maintained the largest share of the computer market since 1991 by continuously collecting customer feedback and customizing products. Dell's strategy is to keep costs low through efficient operations with little manufacturing, retail, or production costs. This allows it to offer competitive prices. However, the document expresses concern that by not substantially updating products or developing new technologies, Dell risks losing customers to competitors that offer more modern options. It recommends Dell invest in product improvements and personalization to strengthen its position.
Competitive Advantage And Core Competenciespriyanka
The document discusses competitive advantage, core competencies, and various corporate strategies. It provides definitions and concepts related to competitive advantage, core competencies, and strategies such as amalgamation, merger, demerger, slump sale, takeover, disinvestment, joint venture, and franchising. Core competencies are unique skills or expertise that provide competitive advantages and allow companies to access new markets. Effective strategies allow companies to optimize their business portfolio.
1) Companies are looking beyond their core business to achieve growth through new areas that account for 42% of revenues by 2020.
2) Top innovators obtain a higher percentage of revenues from new products/services and break even faster than competitors. However, it is becoming increasingly difficult to stay ahead.
3) A framework called the Growth Accelerator Program helps companies create a shared vision for growth, find new growth opportunities, and deliver growth through roadmaps, pilots, and ensuring the right organization and culture.
This document discusses core competencies and dynamic capabilities. It defines core competencies as the abilities that differentiate a company strategically and arise from combining multiple skills. To identify core competencies, the document outlines tests like whether a competency provides unique value to customers, spans multiple businesses, and is difficult for competitors to imitate. It notes that few firms have more than five or six core competencies and that focusing on these allows companies to better create value and develop new opportunities.
Core competencies are a firm's unique skills and abilities that distinguish it in the marketplace. They fulfill three criteria: provide access to markets, contribute significantly to customer benefits, and are difficult for competitors to imitate. The document discusses how core competencies facilitate strategy, innovation, and competitive advantage. It provides examples of companies like Apple, 3M, and Starbucks that have differentiated themselves through core competencies. The core competence model outlines how resources, capabilities, competitive advantage, and strategy are related. Management must identify and build upon a company's core competencies to develop successful long-term strategies.
The document discusses the concept of core competencies, which are the skills, assets, and capabilities that give a company its competitive advantage. Core competencies fuel innovation and differentiation. Examples provided include Sony's core competence of miniaturization and Federal Express' competence in logistics management. Core competencies are enhanced over time and simplify make-or-buy decisions. Core products are the tangible evidence of core competencies and contribute to customer benefits. By leveraging core competencies across business units, companies can enter new markets. The risks of ignoring core competencies include over-reliance on suppliers, failure to invest in future competencies, missed growth opportunities, and weakened competencies over time.
The document discusses the concept of "core competence" introduced by Prahalad and Hamel in their 1990 Harvard Business Review article. They argue that a corporation's core competence lies in its collective learning and skills that make it unique, rather than in its individual business units. Developing core competencies allows companies to access new markets and strengthen competitive advantage. The authors provide examples of how companies like Canon and NEC identified and built upon their core competencies in semiconductors and computing to achieve industry leadership.
The document discusses Michael Porter's generic strategies model which identifies three strategies for gaining competitive advantage - cost leadership, differentiation, and focus. It provides details and examples of each strategy. Cost leadership involves producing standardized products on a large scale at low cost. Differentiation focuses on making the product unique through features, quality, design or service. Focus involves targeting a narrow market segment and achieving either cost advantage or differentiation within that segment. The risks of each strategy are also outlined. The document then provides examples of Dell's successful implementation of virtual integration and targeting of customer segments to achieve cost leadership.
Advantages Of Offshore Product DevelopmentSherry Bailey
Eharmony is a dating service company operating in a growing industry. While the industry has historically grown at 5% annually, it is expected to grow slightly slower at 3.9% yearly through 2020 due to increased competition from other dating sites and apps. Eharmony aims to sustain its competitive advantage through its compatibility matching system which analyzes users' answers to determine the most compatible matches. However, competition and changing consumer preferences for mobile-first dating apps present threats that eharmony must address to maintain its position as a leader in the industry.
Chapter 12 Strategy In Intl Bus. (Fall 2007)knksmart
1. The document discusses strategies that companies can take to compete effectively in international markets, including customizing offerings to local conditions while maintaining core strategies, leveraging skills across subsidiaries, and balancing global standardization with local responsiveness.
2. Companies face pressures to both reduce costs through activities like experience effects and location economies, as well as respond to local differences in tastes, regulations, and distribution channels.
3. The example of Clear Vision eyewear demonstrates developing low-cost manufacturing and high-quality product differentiation strategies to increase value creation and profitability internationally.
Chapter 12 Strategy In Intl Bus. (Fall 2007)knksmart
1. The document discusses strategies that companies can take to compete effectively in international markets, including lowering costs through activities like shifting manufacturing to lower-cost locations or achieving differentiation through product customization.
2. It also discusses benefits of global expansion like leveraging core competencies across markets, gaining location economies from performing activities in optimal locations, and leveraging skills from subsidiaries.
3. Companies expanding globally must balance pressures for cost reductions with pressures for local responsiveness through product customization to different market needs.
Corporate-level strategy concerns determining a firm's mix of businesses and how to manage them. Firms can create value through related and unrelated diversification. Related diversification seeks synergies by sharing resources between related businesses. Unrelated diversification creates value through corporate parenting and portfolio management. The success of diversification depends on managing business units for long-term competitive advantages and ensuring compatibility.
The document discusses key concepts related to business strategy including core competencies, capabilities, strategic planning, and defining a company's mission and vision.
The main points are:
1) A firm's success depends on having distinctive capabilities and core competencies that are difficult for competitors to imitate. These provide the strategic platform for the business.
2) It is important to define what business a company is truly in based on customer needs, rather than just products. The mission statement should communicate the company's core values, purpose, and goals.
3) Developing the right marketing strategy is key to exploiting a company's strengths and selecting the right target markets that fit its capabilities.
The document discusses key aspects of developing capabilities and achieving corporate success. It states that firms must design offerings for well-defined markets and focus on being part of the value delivery process rather than just making and selling products. It also discusses examining costs and capabilities, benchmarking against competitors, and coordinating inter-departmental activities to improve core business processes. Core competencies provide the strategic platform for long-term profitability and competitive advantage. The document emphasizes identifying capability gaps and investing in capabilities rather than individual business units. Measuring added value through output minus input costs is key to assessing corporate success.
“Supercompetitors” are a new kind of market leader, gaining competitive advantage through the things they do better than anyone else—even amid the fierce competition and turbulence of many industries today. Learn more about how they do it: http://strat.bz/yhGHUWN
This document discusses strategies at different levels of an organization. It defines strategy as a plan of action to achieve long-term goals through configuration of resources to gain advantage in markets. Strategies exist at the corporate, business unit, and operational levels. Strategic management involves strategic analysis, choice, and implementation to guide a business according to its direction, scope, markets, advantage, resources, environment, and stakeholders.
This document summarizes an article from strategy+business that discusses the rise of "supercompetitors" - companies that have fundamentally reshaped their industries through their distinctive capabilities. It provides examples of well-known supercompetitors like Amazon, Apple, Starbucks, IKEA, and others. The document asserts that these companies' success is based on having a few highly scalable and mutually reinforcing core capabilities, rather than on size, assets, or short-term profits. It argues that as traditional sources of competitive advantage diminish, the ability to build and leverage distinctive capabilities will determine which companies can gain long-term influence in their industries.
This document summarizes an article from strategy+business that discusses the rise of "supercompetitors" - companies that have fundamentally reshaped their industries through their distinctive capabilities. It provides examples of well-known supercompetitors like Amazon, Apple, Starbucks, IKEA, and others. The document asserts that these companies' success is based on having a few highly scalable and mutually reinforcing core capabilities, rather than on size, assets, or short-term profits. It argues that as traditional sources of competitive advantage diminish, the ability to build and leverage distinctive capabilities will determine which companies can gain long-term influence in their industries.
Headless commerce refers to separating the front-end experience layer from the back-end ecommerce functionality. This allows the front-end to be updated independently without disrupting the back-end. It also enables ecommerce capabilities to be accessed via APIs and consumed by any device, front-end, or application. The document discusses how headless commerce can help brands compete through faster innovation, improved customer experiences, and more flexible integration across channels. It recommends that companies treat their ecommerce platform like a product, decouple it technically through APIs, and build internal expertise in customer experience, user experience, and service design.
The document discusses various topics related to outsourcing and downsizing, including:
- Definitions and examples of outsourcing, as well as advantages like increasing expertise and disadvantages like loss of control.
- The importance of identifying core competencies to develop competitive products and services. Flexibility and innovation are discussed.
- Downsizing is defined as reducing company size by eliminating workers/divisions to cut costs and increase efficiency. Advantages include labor cost savings but disadvantages include skill/knowledge loss and employee stress.
- Examples of companies that have significantly downsized include HSBC, GM, and Toyota which avoided layoffs during an economic crisis through strategies like reduced hiring and intermittent production schedules.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
1. THE CONCEPT OF
CORE COMPETENCY
A presentation by:
Sajeed Mahaboob
2011ME1111
1
Indian Institute of Technology Ropar
2. CORE COMPETENCY
Core competency is a concept in management theory introduced by, C. K.
PRAHALAD and GARY HAMEL.
It can be defined as "a harmonized combination of multiple resources and skills that
distinguish a firm in the marketplace“
Core competency are the skills, characteristics, and assets that set your company
apart from competitors.
They are the fuel for innovation and the roots of competitive advantage.
The engine for new business development, underlying component of a company’s
competitive advantage created from the coordination, integration and
harmonization of diverse skills and multiple streams of technologies.
2
3. COMPETENCIES DO NOT MEAN
Outspending competitors on research and development
Cost sharing among SBU’s
Vertical integration
3
4. Roots Of Competitive Advantage
Consolidate corporate wide tech. & production skills
Binds the existing business and an engine of new business development.
Involvement and a deep commitment to work across organizational boundaries.
4
5. IDENTIFYING YOUR CORE
COMPETENCIES
Prahalad and Hamel suggest three factors to help identify core competencies in
any business:
1. Provides potential access to a wide variety of markets
2. Makes a significant contribution to the perceived customer benefits of the
end product
3. Difficult for competitors to imitate
5
6. 1. Provides potential access to a wide variety of markets
The key core competencies here are those that enable the creation of new products and
services.
Example: Why has Saga established such a strong leadership in supplying financial
services (e.g. insurance) and holidays to the older generation?
Core Competencies that enable Saga to enter apparently different markets:
- Clear distinctive brand proposition that focuses solely on a closely-defined customer
group
- Leading direct marketing skills - database management; direct-mailing campaigns; call
center sales conversion
- Skills in customer relationship management
- ITC
6
7. 2. Makes a significant contribution to the perceived
customer benefits of the end product
Core competencies are the skills that enable a business to deliver a fundamental customer
benefit - in other words: what is it that causes customers to choose one product over
another? To identify core competencies in a particular market, ask questions such as "why is
the customer willing to pay more or less for one product or service than another?" "What is a
customer actually paying for?
Example: Why have Amazon been so successful in capturing leadership of the market
for online book shopping?
Core competencies that mean customers value the Tesco.com experience so highly:
- Designing and implementing supply systems that effectively link existing shops with the
Amazon.com web site
- Ability to design and deliver a "customer interface" that personalizes online shopping and
makes it more efficient
- Reliable and efficient delivery infrastructure (product picking, distribution, customer
satisfaction handling)
7
8. 3. Difficult for competitors to imitate
A core competence should be "competitively unique": In many industries, most skills
can be considered a prerequisite for participation and do not provide any significant
competitor differentiation. To qualify as "core", a competence should be something
that other competitors wish they had within their own business.
Example: Why does Dell have such a strong position in the personal computer
market?
Core competencies that are difficult for the competition to imitate:
- Online customer "bespoking" of each computer built
- Minimization of working capital in the production process
- High manufacturing and distribution quality - reliable products at competitive prices
8
9. Losing Core Competencies
How to lose: A Core Competency is lost:
Through outsourcing/OEM-supply relationships
=> Example: Chrysler vs Honda
(Chrysler unlike Honda considered its engines and power trains as simply another
component and started outsourcing)
Through giving up opportunities to establish competencies that are evolving in
existing businesses
=> Example: television business
9
10. More About…
STRATEGIC ARCHITECTURE
Company’s future is determined by it’s core competencies. These competencies
define the architecture and characteristics of the global competitive firm.
BOUNDARY LESS ORGANIZATION
In the old diversified corporation, ideas and technologies are reluctantly shared from
one SBU to the next, if at all.
Boundaries seem transparent when SBU’s share core competencies and core
products. These resources come from the firm.
RESOURCE ALLOCATION
When core competencies are the roots of the firm, specialized employees and core
products can be allocated to various SBU’s.
At Maruti, specialized employees move between camera and printer products
regularly.
10
11. INNOVATION
Using core competencies, new technologies can be developed without heavy R&D costs.
Fiat: Drive your way; Maruti Suzuki : Count on us; Hyundai: New thinking new possibilities;
Honda: Off-road buggy; Ford: Go further
COMPETENCE BUILDING
The focus of today’s global firm should be in competence building.
Constantly improving competencies provides for new integrated technologies.
Competencies provide focus for long-term goals.
COMPETITIVE ADVANTAGE
Short-term market share can be won by anyone with a good idea.
Race to get products on the shelf.
Long-term success involves competency structured organizations, innovation, and market
consistency.
Same core products, integrated into new end products, creating new markets.
11
13. THE LOSS OF CORE COMPETENCIES
Cost-cutting moves sometimes destroy the ability to build core competencies. For
example, decentralization makes it more difficult to build core competencies because
autonomous groups rely on outsourcing of critical tasks, and this outsourcing prevents
the firm from developing core competencies in those tasks since it no longer
consolidates the know-how that is spread throughout the company.
Failure to recognize core competencies may lead to decisions that result in their loss.
For example, in the 1970's many U.S. manufacturers divested themselves of their
television manufacturing businesses, reasoning that the industry was mature and that
high quality, low cost models were available from Far East manufacturers. In the
process, they lost their core competence in video, and this loss resulted in a handicap
in the newer digital television industry.
Similarly, Motorola divested itself of its semiconductor DRAM business at 256Kb level,
and then was unable to enter the 1Mb market on its own. By recognizing its core
competencies and understanding the time required to build them or regain them, a
company can make better divestment decisions.
13
14. IMPLICATIONS FOR CORPORATE MANAGEMENT
Prahalad and Hamel suggest that a corporation should be organized into a portfolio
of core competencies rather than a portfolio of independent business units.
Business unit managers tend to focus on getting immediate end-products to market
rapidly and usually do not feel responsible for developing company-wide core
competencies. Consequently, without the incentive and direction from corporate
management to do otherwise, strategic business units are inclined to underinvest in
the building of core competencies.
If a business unit does manage to develop its own core competencies over time,
due to its autonomy it may not share them with other business units. As a solution
to this problem, Prahalad and Hamel suggest that corporate managers should have
the ability to allocate not only cash but also core competencies among business
units. Business units that lose key employees for the sake of a corporate core
competency should be recognized for their contribution.
14
15. CORE PRODUCTS
Core competencies manifest themselves in core products that serve as a link
between the competencies and end products. Core products enable value creation
in the end products. Examples of firms and some of their core products include:
• Canon - laser printer subsystems;
• Honda - gasoline powered engines;
• Black & Decker - small electric motors
Because firms may sell their core products to other firms that use them as the basis
for end user products, traditional measures of brand market share are insufficient
for evaluating the success of core competencies. Prahalad and Hamel suggest that
core product share is the appropriate metric. While a company may have a low
brand share, it may have high core product share and it is this share that is
important from a core competency standpoint.
Once a firm has successful core products, it can expand the number of uses in
order to gain a cost advantage via economies of scale and economies of scope.
15
17. Case Study 1: HONDA MOTOR CO.
It is a Japanese multinational corporation primarily known for automobiles and
motorcycles.
It is the largest manufacturer of motorcycles and internal combustion engines
measured by volume producing more than 14 million internal combustion engines
in an year.
Apart from core automobiles and motorcycles Honda are also manufacturers
garden equipment, marine engines, personal watercrafts
They have recently ventured into the aerospace industry with GE Honda Aero
engines. The Honda jet was scheduled in 2011.
17
18. CORE COMPETENCIES OF HONDA
R&D
FINANCIAL RESOURCES
MANUFACTURING
COMBINATION OF CORE COMPETENCIES LET TO CORE PRODUCT i.e.
ENGINES WHICH THEY DIVERSIFIED INTO VARIOUS BUSINESS LIKE
AUTOMOBILES,MOTORCYCLES,POWER PRODUCTS,HONDA JETS AND
ROBOTICS.
18
19. Case Study 2: Black & Decker
Black & Decker 's core technological competency pertains to 200 to 600 W electric
motors , and this motor is their core product . All of their end products are modifications
of this basic technology, with the exception of their work benches, flash lights, battery
charging systems, toaster ovens, and coffee percolators.
They produce products for three markets:
• The home workshop market: In the home workshop market, small electric motors
are used to produce drills, circular saws, sanders, routers, rotary tools, polishers, and
drivers.
• The home cleaning and maintenance market: In the home cleaning and
maintenance market, small electric motors are used to produce dust busters, etc.
• The kitchen appliance market: In the kitchen appliance market, small electric
motors are used to produce can openers, food processors, blenders, bread makers,
and fans.
19
20. Summary
Learn your competencies
Develop your competencies
Structure your organization around your competencies
Involve core products in all end products
Outsource non-competencies with strategic alliances and licensing.
20
21. “
”
If you don't have a
competitive advantage, don't
compete
- Jack Welch
21
22. “
”
“ The ability to learn faster than
your competitors may be only
sustainable competitive
advantage.”
- Arie De Geus
22
23. References:
Article Study sent by you
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.
http://www.quickmba.com/strategy/core-competencies
http://www.tutor2u.net/business/strategy/core_competencies.htm
23