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The Core Competence of the Corporation

Learn about the core competence perspective in business strategy, emphasizing the collective learning and competence of an organization at the production, operations, and technology levels. Discover how core competencies drive competitive advantage by leveraging them across products and markets. Understand the essential role of core competencies in shaping competitiveness and guiding top management strategy. Explore how core competencies serve as the foundation for new business development.

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The Core Competence of the Corporation

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  1. The Core Competenceof the Corporation C.K. Prahalad & Gary HamelHarvard Business Review, May-June, 1990

  2. The Core Competenceof the CorporationC.K. Prahalad & Gary HamelHarvard Business Review, May-June, 1990 • The collective learning and competence of an organization, at the production / operations / technology level.

  3. Core Competence Perspective • Production / Operations / Technology should not be thought of as end-product specific. • Core Competencies infuse the majority of an end products’ benefit, but are not specific to any particular product

  4. Competing through Competencies • Competitive Advantage stems from leveraging Core Competencies across varying products and markets, and in new ways. • “In the core competencies underlying them, disparate businesses become coherent.”

  5. The “Roots” of Competitiveness

  6. Core Competences are… • The appropriate level for top management strategic attention, and for global competition. • The foundation for new business development.

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