Core Competency

Core competencies are the most significant value creating skills within a company and key areas of expertise that are distinctive to a company and critical to the company's long-term growth. Core competencies are the pieces that a company is superior than its competitors in the critical, central areas of the company where the most value is added to its products. These areas of expertise may be in any area from product development to employee dedication. A competence which is central to business's operations but which is not exceptional in some way is not considered as a core competence, as it will not generate a differentiated advantage over rival businesses. It follows from the concept of core competencies; resources that are standardized or easily available will not enable a business to achieve a competitive advantage over rivals (Marketline Business Information Center, 2007). What makes each company different is the core piece that enabled it to establish itself in the market. Different companies have different assets to exploit (Moore, 2005). If a company can define what their core competencies are then the company has a better chance to innovate. Innovation is the key to a company’s longevity in the market, keeping the company and or the product from moving into the decline phase. Whether it is application innovation or product innovation the ability for a company to focus on their core gives them a leg up in the industry. As John Dewey states, “A problem well defined is half solved” (Dundon, 2002). Most companies do not know what their problem is, and they are not able to focus on the problem. A company that knows what the problem is has a better chance of taking their core component and innovating appropriately to s...

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...vate. Innovation came to Ringler from outside the box but within the company. Ringler did not reinvent itself. Ringler simply took an idea that already existed and applied it in a new and unique way. This tradition of independence and entrepreneurship has inspired numerous innovations at Ringler, including the incorporation of various types of trust concepts in the structured settlement proposal. Ringler consultants also pioneered the use of sophisticated damage analysis and life care plans in structured settlements, which had better define both the needs and costs for the injured person’s future care. With ninety-eight percent of new ideas already existing, a company must look internally and externally for new stimuli (Dundon, 2002). Ringler was and is able use one of its biggest core competencies, people, to further itself in the structured settlement industry.