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The core competency of the business is the unique ability which a company owned to get profits, look for survival and explore the sustainable development. The unique internal performance of the company is to be hard to imitate. The external performance of the company is the comprehensive capacity of managing risks and grasping business opportunities. The purpose of this essay is to analyze and evaluates the benefits and drawbacks of the concept of core competence. In addition, this essay will provide some examples to examine the relationship between core competence and Icarus Paradox. Therefore, this essay will divide into four parts. In the first part, it will explain that what is the core competence and why it is important for a company to succeed. Then, the second part will be mainly about the classification of the core competence. Thirdly, the ways to identify the core competence and the benefits of the core competence will be discussed. Finally, the defects of the core competence and Miller's ideas of Icarus Paradox will be outlined. In addition, four paths which lead the business to decline will be emphasized.

The definition of the core competences

According to McGee, Thomas and Wilson(2010), a core competence is a set of capabilities that diverse companies. In addition, core competences are based on how the perfect end product to be produced by using companies unique skills and resources. The main vision is collective learning especially how to apply the production skills and technologies to the existing business(Hamel and Prahalad, 1990). As an enterprise, a core competence is significant for them to produce a more competitive product. There are the consensus that core competencies emphasize the integration of resources,...

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McGee, J., Thomas, H., and Wilson, D., 2010. Strategy: Analysis and Practice. 2nd ed. Berkshire:McGraw-Hill Education

Miller, D.,1992. ‘The Icarus paradox: how exceptional companies bring about their own downfall’. Business Horizons,vol. 35, issue 1, pages 24-35

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