Core Competences

• What are core competencies?

  A set of skills a business performs better
• Why are core competencies important for a business?

  They help establish a competitive advantage
• How can high quality serve as a core competency?

  It can lead to brand loyalty and competitive edge
• What did Prahalad and Hamel suggest about non-core competencies?

  They should be outsourced to other providers
• What can core competencies achieve for a business?

  Added value and brand loyalty
• How can patenting a core competency benefit a business?

  It prevents rivals from replicating the skill
• What is a challenge in maintaining core competencies over time?

  Dynamic changes in technology and economy
• What limitations might arise from outsourcing core competencies?

  Quality issues and over-reliance on providers
• What are the implications of outsourcing non-core competencies?

  • Potential quality issues
  • Over-reliance on external providers
  • Loss of control over processes
• What factors contribute to the dynamic nature of business affecting core competencies?

  • Technological changes
  • Economic changes
  • Legal changes
  • Environmental changes