Core competency

A company's core competency is the one thing that it can do better than its competitors. A core competency can be anything from product development to employee dedication.

If a core competency yields a long term advantage to the company, it is said to be a sustainable competitive advantage.

An Example

For example, Black and Decker's core technological competency is in one-quarter to three-quarter horsepower electric motors. All of their products are modifications of this basic technology (with the exception of their work benches, flash lights, battery charging systems, toaster ovens, and coffee percolators).

They produce products for three markets;

1 - the home workshop market - In the home workshop market, small electric motors are used to produce drills, circular saws, sanders, routers, rotary tools, polishers, and drivers.
2 - the home cleaning and maintenance market - In the home cleaning and maintenance market, small electric motors are used to produce dust busters, vacuum cleaners, hedge trimmers, edge trimmers, lawn mowers, leaf blowers, and pressure sprayers.
3 - kitchen appliance market. In the kitchen appliance market, small electric motors are used to produce can openers, food processors, blenders, bread makers, and fans.

See Also

Finding related topics

Other Sources

Gary Hamel and C K Pralahad, The Core Competence of the Corporation, Harvard Business Review, May-June 1990