What is core competence? (explain it with easy words)

1.	What is core competence? (explain it with easy words)
Answer» A core competency is a concept in management theory introduced by C. K. Prahalad and Gary Hamel. 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. *Core competencies fulfill three criteria:* *1. Provides potential access to a wide variety of markets.* *2. Should make a significant contribution to the perceived customer benefits of the end product.* *3. Difficult to imitate by competitors.* 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.

Answer»

A core competency is a concept in management theory introduced by C. K. Prahalad and Gary Hamel. 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.

Core competencies fulfill three criteria:

1. Provides potential access to a wide variety of markets.

2. Should make a significant contribution to the perceived customer benefits of the end product.

3. Difficult to imitate by competitors.

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.

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