Yahya Abdulqader

The Core Competence of the Corporation

By C.K. Prahalad and Gary Hamel

Enable any firm to be in a competitive position in the market.

Empower the development of core products.

Summary

Core competence is:

A mixture of collective learning and variety of skills that

stand behind product’s line.

Organization of work and the delivery of value.

Communication, involvement, and a deep commitment to working

across organizational boundaries.

Involves many levels of people and all functions.

Conceptual Thoughts

Core competence does not diminish with use, it enhances as

it is applied and shared.

Conceptual Thoughts

Three tests can be applied to identify core competence:

1. Should provide potential access to a wide variety of markets.

2. Should make a significant contribution to the perceived customer

benefits of the end product.

3. Should be difficult for competitors to imitate.

Conceptual Thoughts

Provided a clear view for the term core competence.

Misdefine term of core competence leads to business failure.

Paying particular attention for key employees.

Critical Personal Analysis