Core Competencies

LITERATURE REVIEW OF CORE COMPETENCE

INTRODUCTION:

A corporation can get competitive advantage in the market if it utilizes its resources, technology and skills efficiently and effectively relative to its competitors. Resources are present every where in the market and every one can acquire it but the actual edge can be achieved by the way an organization is integrating the diversified skills and managing its technology. A corporation cannot focus on every activity of it so in such situation it focuses on the core area which gives a sustainable competitive advantage for a longer period of time. A corporation can be called as a competent corporation if it is rich with new technology, Human skills and resources and these things are acquired by almost every corporation, we called these things as the competencies of a corporation but what actually matters in order to get leadership in a competitive environment is the coordination of skills and management of resources. The integration of skills and management of technology is the hallmark for a corporation to get superiority over its competitors in the market, this integration and management capabilities is termed as the Core competence of a corporation. Core competence is present within the firm, it can be employee’s efforts, it can be customer and employee relationships and it can be the management of a distribution channel as well. Core competence doesn’t focus on an end product/result but it focuses on product which leads to the production of several other end products. Core competence is not obsolete but it enhances when it is shared. It can be learned and a corporation brings changes in it with time in order to secure it from limitability. Honda’s core competence is its engine, although engines are manufactured by many other companies like Ford but the distinguishing feature between Honda and Ford is the integration of skills required to make an engine of better quality than Ford. Customer is...