424:, the authors C. K. Prahalad and Gary Hamel show how executives can develop the industry foresight necessary to adapt to industry changes and discover ways of controlling resources that will enable the company to attain goals despite any constraints. Executives should develop a point of view on which core competencies can be built for the future to revitalize the process of new business creation. Developing an independent point of view of tomorrow's opportunities and building capabilities that exploit them is the key to future industry leadership.
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439:, quality, and productivity, most executives do not spend their time developing a corporate view of the future because this exercise demands high intellectual energy and commitment. The difficult questions may challenge their own ability to view the future opportunities but an attempt to find their answers will lead towards organizational benefits.
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for mapping competencies to specific products in the product portfolio. Using their approach, clusters of competencies can be aggregated to core competencies. Bonjour & Micaelli (2010) introduced a similar method for assessing how far a company has achieved its development of core competencies.
451:
Core products contribute "to the competitiveness of a wide range of end products. They are the physical embodiment of core competencies." Approaches for identifying product portfolios with respect to core competencies and vice versa have been developed in recent years. One approach for identifying
393:
In a 1990 article titled "The Core
Competence of the Corporation", C. K. Prahalad and Gary Hamel illustrated that core competencies lead to the development of core products, which can further be used to build many other products for end users. Core competencies are developed through the process of
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Core competencies are related to a firm's product portfolio via core products. Prahalad and Hamel (1990) defined core competencies as the engines for the development of core products and services. Competencies are the roots of which the corporation grows, like a tree whose fruit are end products.
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Alexander and Martin (2013) state that the competitiveness of a company is based on the ability to develop core competences. A core competence is, for example, a specialised knowledge, technique, or skill. The core capability is the management ability to develop, out of the core competences, core
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For an organization to be competitive, it needs not only tangible resources but intangible resources like core competences that are difficult and challenging to achieve. It is critical to manage and enhance the competences in response to industry changes in the future. For example, Microsoft has
405:
The use and understanding of the concept of core competences can be very important to enterprises. They can use core competences in order to excel at the contrivance of core products. Enterprises could also use core competences to raise the values of customers and stakeholders.
685:
Christensen, C. M., & Kaufman, S. P., 2006. Assessing Your
Organization’s Capabilities: Resources, Processes, and Priorities. Burgelman, R. A.; Christensen, C. M.; Wheelwright, S. C. (Eds.), Strategic Management of Technology and Innovation. McGraw Hill,
417:) and represent resource combination steered from the corporate level. Because the term "core competence" is often confused with "something a company is particularly good at", some caution should be taken not to dilute the original meaning.
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For example, a company's core competencies may include precision mechanics, fine optics, and micro-electronics. These help it build cameras, but may also be useful in making other products that require these competencies.
461:, which is defined as resources, processes, and priorities. Furthermore, they present a method to evaluate different product architectures with respect to their contribution to the development of core competencies.
713:
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continuous improvements over the period of time rather than a single large change. To succeed in an emerging global market, it is more important and required to build core competencies rather than to do
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Galunic, D.C. and Rodan, S. (1998). Resource recombinations in the firm: knowledge structures and the potential for
Schumpeterian innovation. Strategic Management Journal 19. p. 1193–1201.
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Importantly, according to C. K. Prahalad and Gary Hamel (1990) definition, core competencies are the "collective learning across the corporation". They can, therefore, not be applied to the SBU (
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A core competency results from a specific set of skills or production techniques that deliver additional value to the customer. These enable an organization to access a wide variety of markets.
364:. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.
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products and new business. Competence building is, therefore, an outcome of strategic architecture which must be enforced by top management in order to exploit its full capacity.
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Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic
Management Journal 13-S1. p. 111–125.
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Alexander, A.; Martin, D. (2013). "Intermediaries for open innovation: A competence-based comparison of knowledge transfer offices practices".
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based innovations where, for a variety of reasons, it is difficult for competitors to replicate or compete with
Microsoft's core competences.
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utilized its portfolio of core competencies to dominate the semiconductor, telecommunications, and consumer electronics market.
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Schilling, M. A. (2013). Strategic management of technological innovation, p.117 International
Edition, McGraw-Hill Education.
650:" In Proceedings of the 9th Dependency Structure Matrix (DSM) International Conference, 16–18 October 2007, Munich, Germany.
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Prahalad, C. K., & Hamel, G. (1990). The Core
Competence of the Corporation. Harvard Business Review, 68(3), 79-91. p.84
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core competencies with respect to a product portfolio has been proposed by
Danilovic & Leisner (2007). They use
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Should make a significant contribution to the perceived customer benefits of the end product.
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Analyzing core competence and core products for developing agile and adaptable corporation.
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Yang, C. (2015). "The integrated model of core competence and core capability".
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Towards a
Capability Framework for Systems Architecting and Technology Strategy
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More recently Hein et al. link core competencies to
Christensen's concept of
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Management concept of identifying the basis of competitiveness in an industry
676:". Proceedings of the 16th International DSM Conference 2014, Paris, France.
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Prahalad, C.; Hamel, G. (1990). "The core competence of the corporation".
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Design core competence diagnosis: a case from the automotive industry
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Value Migration: How to Think Several Moves Ahead of the Competition
663:". Engineering Management, IEEE Transactions on, 57(2), 323-337.
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702:", Harvard Business Review (v. 68, no. 3) pp. 79–91.
516:", Harvard Business Review (v. 68, no. 3) pp. 79–91.
598:"Distinctive Competencies: How to Use Your Capabilities"
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Provides potential access to a wide variety of markets.
356:is a concept in management theory introduced by
572:Technological Forecasting & Social Change
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659:Bonjour, E., & Micaelli, J. P. (2010). "
646:Danilovic, M., & Leisner, P. (2007). "
367:Core competencies fulfill three criteria:
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443:Core competencies and product development
672:Hein, A.M., Metsker, Y., Sturm, J.C., "
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700:The core competence of the corporation
698:Prahalad, C.K. and Hamel, G. (1990). "
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505:Prahalad, C.K. and Hamel, G. (1990) "
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377:Difficult to imitate by competitors.
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600:. Inevitable Steps. June 10, 2015
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549:10.1080/14783363.2013.820024
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711:Slywotzky, Adrian (1995).
454:design structure matrices
537:Total Quality Management
422:Competing for the Future
621:Harvard Business Review
415:strategic business unit
481:Competitive advantage
435:In a race to achieve
295:Business Model Canvas
272:Managerial grid model
209:Competitive advantage
730:Strategic management
396:vertical integration
304:Strategic Grid Model
244:Frameworks and tools
119:Rita Gunther McGrath
70:Strategic management
471:Resource-based view
281:Growth–share matrix
225: •
218:Performance effects
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164:Alfred Thayer Mahan
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151:Carl von Clausewitz
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512:2014-07-14 at the
428:expertise in many
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261: •
259:Balanced scorecard
252: •
227:Generic strategies
88:Strategic thinking
84:Strategic planning
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232:Mission statement
79:Strategic studies
75:Military strategy
18:Core competencies
16:(Redirected from
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187:Henry Mintzberg
133:Candace A. Yano
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308:Strategy map
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178:Sharon Oster
146:Liddell Hart
686:pp.153-163.
604:January 31,
254:Five forces
214:Value chain
142:Jim Collins
97:Game theory
487:References
386:Background
362:Gary Hamel
182:Chris Zook
169:J.C. Wylie
128:Gary Hamel
578:: 38–49.
557:154842270
724:Category
627:: 79–91.
510:Archived
465:See also
199:Concepts
66:Strategy
43:Strategy
35:a series
33:Part of
155:Sun Tzu
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553:S2CID
606:2016
360:and
312:VRIO
268:OGSM
250:SWOT
580:doi
545:doi
420:In
400:NEC
286:STP
726::
625:68
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576:80
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494:^
430:IT
352:A
37:on
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