Question

what does the concept of "core competence" mean? why is this concept important? How would you determine if the information an organization "claims" as its core competence actually matches what they achieve? Provide an example where there is a match between core competence and organizational achievement. Discuss where you you obtain the information used to "test" the organization's ability to deliver on its core competence.

Answer 1

core competence means: the resources and capabilities that comprise the strategic advantages of a business. A modern management theory argues that a business must define, cultivate, and exploit its core competencies in order to succeed against the competition.A variation of the principle that has emerged in recent years recommends that job seekers focus on their personal core competencies in order to stand out from the crowd. These positive characteristics may be developed and listed on a resume. Some personal core competencies include analytical abilities, creating thinking, and problem resolution skills

• Importance :The activity must provide superior value or benefits to the consumer.
• It should be difficult for a competitor to replicate or imitate it.
• It should be rare.
• Core competencies help an organization to distinguish its products from it's rivals as well as to reduce its costs than its competitors and thereby attain a competitive advantage. It helps in creating customer value. Also, core competencies help in creating and developing new goods and services

Organizational achievement:It's important to develop achievement levels in your organization to give the employees goals to which they can ascribe. A goal is a benchmark in the future and provides a level of motivation and recognition for exceptional work. Achievement levels provide measurable landmarks of your progress through the organization.

Core competencies are proficiencies or resources that give businesses a competitive advantage. If companies are able to develop their core competencies, they have a greater shot at beating out the competition and reaping the benefits.There are three main criteria that organizations can follow to determine the strategic strengths that will give them a competitive advantage.Companies can achieve a competitive advantage a number of ways. Three common and effective strategies which companies have used to find success are cost leadership, differentiation, and market segmentation. Cost leadership refers to bringing consumers goods at a lower price. Companies can achieve cost leadership by improving efficiency in their operations. If they can lower overhead costs in manufacturing, labor, resources, and every other aspect that goes into the production of their goods or services, they can give consumers the greatest value, which can lead to increased sales and customer loyalty.Companies achieve this through innovation in developing products and services. While seeking ways to fill niche target markets, deliver services quickly and efficiently, and increase product quality, companies are bringing consumers better products and better values. This is something that customers recognize and pay back with loyalty. Another benefit of developing core competencies is that it helps organizations establish the essence of their brand. If a company’s core competency lies in their outstanding customer service, then that is also an excellent attribute that can be used for marketing their brand.Amazon is the best example for this.