Question

Core Competency (Tree Model) by Garry Hamel and C.K. Prahalad End product End product End product Leaves - end products Branches core products Trunk core business Roots core competency End product End product Core product competence Core competence Core competence How can you apply Core Competency Theory by Prahalad and Hamel to Suzuki Motor Corporation? p/s: I would prefer user "ananonb" to answer. However, if you do not simply plagiarise it somewhere on google and talk sense so that I can understand, then it is fine.

Answer 1

According to Prof. C. K Prahalad and Garry Hamel, core competencies are the source of competitive advantage to a firm. It brings many specialized activities in production facility, focus on main strengths and capabilities of the firm like skills of employees, quality in products and services offered or unique business model to the product manufactured and services designed. A firm might create distinguish products to its product line, specialized work in innovative business solutions, a strong managerial support to line functions etc. It places the firm at the top of the industry competition.

Suzuki has many strong capabilities and specialized production system like lean manufacturing .It offer range of products like car, stunt making bikes and racing cars, auto ancillaries product, and value driven philosophy in the industry .Its unique customer service approach can be said as root to its success in global market. It has highest market share in Indian subcontinent due to the core competencies like low price offerings, best after sales services, comfort and safety in its offerings to the customers. It always brings value to the customers at any cost.

According to the core competence model , Suzuki has competitive advantage over its competitors due to its strong supply chain activities, lean manufacturing , quality centred approach , backward and forward integration of support and business related activities , strong team of capable engineers, its specialized product offerings , and most important the trust and value based business orientation in global automobile market. It aims to deliver trust and true value to its large group of customers. Its each stakeholders work as its partner and which ultimately force it to become no. one company ij its segment.