Core Competencies: Why they seek more and more?

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A core competency is a concept in management theory originally advocated by C.K. Prahalad and Gary Hamel. Core competency is a unique technique that cannot be imitate easily by competitors. For some company core competency lies in sales and marketing team and for some company it lies in productions team. Human resources team in many companies now focuses to develop core competencies in their organizations. Interpersonal skills, infinite intelligence, moral intelligence, Technical skills, leadership skills etc are some of those core competencies.
Concentrating on core competencies not only create unique integrated system but also strengthen the technological skills for diverse production and marketing. The main goal of the management is to focus attention on core competencies that really affect the competitive advantage. Core competencies are like a root of tree that is the most important for companies to survive.
The most important thing for company is to clarify the core competencies, build the core competencies and cultivate it. Manager should identify the core competencies that support it and after that enhance them to build competitive edge. Manager should be able to cultivate the core competencies of their peers by manage team well within the boundaries of company.
In short core competencies are those capabilities that are critical to achieve competitive advantages over rivals. Core competencies are the skills that enable Company to deliver a fundamental customer benefits over their rivals. Core competencies should not be consider as a fixed competencies but should be change in response to change in the environment of company. They are flexible and evolve over time in company by adapting changes according to circumstances and opportunities.
Company should ask that why customer buy their products and why they actually pay for the products. Company should develop an understanding of their capabilities of what customers value the most and invest accordingly to maintain the value of customers. They can set core competencies as a strategy to gain market share and win over the rivals. Company should understand core competencies as a unique set of skills and cannot imitate by their competitors. Understanding the core competencies allows companies to invest in the strength that differentiate them and set the strategies that unify the entire company. Company should isolate the key abilities and use it as strength.
Company should understand that development of core competencies allow for personal as well as professional growth and development. By identifying it, company allows a business to maximize its resources and abilities.
Some companies also failed to build the core competencies because of management capabilities. GE Company sold much of its consumer electronic business to Thomson of France because of its inability to boost the technological advancement and skills in the employees. Novo Nordisk’s high attrition rate of core middle management people affects a lot on company’s overall performances.
Honda’s core competencies in engine and power trains that gives a distinctive advantage in car, motorcycle, lawn mower, and generator businesses. Canon’s core competencies like optic, imaging, and microprocessor control have enabled it to enter and dominate markets like copier, laser printer, cameras, as well as image scanner.
To conclude, company should pamper the creativity and innovation in the industry and focuses more and more to bring new ideas to achieve competitive edge with the help of core competencies. Company should also motivate managers and employees to bring new ideas from them and develop competency.

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