The Core Competence of the Corporation

The idea of competence in an organization is not new, during the 80s and 90s core competence has changed dramatically, but core competence is quite new as it aims to achieve competitive advantage every now and then. Authors C.K. Prahalad and Gary Hamel introduced the concept in an article in the May-June issue of Harvard Business Review in 1990 managers now considers almost everything as a potential competence. But what is a core competence? The …

…focusing their efforts on developing a core competence need to ensure that their investment and strategies are targeted at strengthening competencies over time. This can be emphasized by the fact that over time all companies lose their market power as they become vulnerable to environmental changes and competitors' new competences and strategic actions. Thus, core competences are essential for a company to succeed, and today competencies rule more than ever in this rapidly changing environment.