The core competence of the corporation ppt
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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.
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Microsoft power point 010610 ddc-recommendations contract end
Microsoft power point 010610 ddc-recommendations contract end
Microsoft power point 010610 ddc-recommendations q12010
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- 1. THE CORE COMPETENCE OF THE CORPORATION PRESENTED BY – GROUP 5 NEHA SINGH (17MBA0040) POOJA KUMARI (17MBA0045) SAYAN BANARJEE (17MBA0057) SHUBHANGI JAIN (17MBA0059) ANUSUYA M. (17MBA0133) SOURAV ROY (17MBA0061)
- 2. What is core Competence ? • Introduced by C.K. Prahalad and Gary Hamel • Picture of GTE and NEC in the era of 1980 – 1988 RETHINKING THE CORPORATION o Creating products that customer needs but have not yet even imagined. o Strategic intent and strategic alliance (NEC vs. GTE )
- 3. ROOTS OF COMPETITIVE ADVANTAGE • Portfolio of business and portfolio of competencies create the difference. Canon vs. Xerox • Short run ( price / performance attributes ) and long run ( low cost / fast pace attributes ) • Real source of advantage – consolidated corporate wide technologies and production skills. • They grow when applied and shared.
- 4. How Not To Think Of Competence ? • Cultivating does not mean outspending rivals on R&D or vertical integration. • Example: Canon vs. Xerox.
- 5. Identifying core competencies- and losing them. • Identifying core competencies Three tests to identify core competency. 1. Potential access to wide variety of markets (display systems ) 2. Contribute to the end product benefits (Honda) 3. Difficult to imitate (JVC’s decision on videotape) • Losing core competencies 1. Outsourcing (Chrysler/Honda) 2. Alliance 3. Forgoing opportunities (GEC, Motorola )
- 6. From core competencies to core products • To sustain leadership – Company maximize their share in manufacturing core products (Matsushita 45%) • Well targeted core products lead to economies of scale and scope.
- 7. The tyranny of SBU • Global leadership is based on core competency , core products and end products. Major potholes: • Underinvestment in developing core competencies and core products • Imprisoned resources • Bounded Innovations
- 8. Developing Strategic Architecture • Strategic Architecture • Significant amount of time should be spent ( NEC C & C) • Consistent resource allocation and administrative infrastructure.
- 9. Redeploying to exploit competencies • SBU should bid for core competency in the same way as they bid for capital. • Core competencies at Canon. • Rotation program is a way to wean employees. Core competencies are the wellsprings of new business development