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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Strengths are competitive advantages or core competencies that give a company an advantage in meeting the needs of its target markets. According to Annual Report of Ford Motor Company (1998), Ford Company has an excellent leadership and management strengths. The company have an excellent knowledge and analytics of the global market
Core competencies are a collection of competencies that crosses divisional boundaries, which allow a business to be competitive in a marketplace. This is something that the corporation that the business can do exceptionally well. A core competency should allow companies to expand into a new end markets including providing a significant benefit to customers. This should be hard for competitors to replicate the products and services.
What core competencies do you think the company has and what is needed to exploit opportunity and counter threats.
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Target Corporation core competency are an outstanding value, continuous innovation, exceptional customer experience, design for all, diversity work and shopping environment, inclusion, great customer services and more for the money. Target core competency adds more values to its customers that it competitor cannot provide and sets a trend in the industry. The clean and recognizable atmosphere becomes an industry benchmark and consumer keeps coming to the clean and unique layout Target stores.--
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
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This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
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In order to set an example, the authors differentiated the high performance businesses by providing the three building blocks to become high performers, which are market focus and position, distinctive capabilities and high performance anatomy. Market focus and position, is the understanding of your position in the market, market leadership and the organization’s preparedness to chance course ahead of competition. Distinctive capabilities differentiate the business from others by highlighting competencies. On the other hand, high performance anatomy encompasses five key elements which are leadership, people development, technology, performance and agility and innovation.
This approach aims in increasing firm strategic capableness its works on welfare that the competitive advantage can only be obtain when the firm s human imagination are enabled for faster scholarship process. In this approach an organization is visualized as a megabucks of tangible and intangible recourses which have a capability for improving the products competency within the market. A fundamental