Core Competencies
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Global competition can be observed on both a short term and long term nature. In the short term global competition is not just about a business in terms of current finance, moreover it is about looking at the current product range against what is available in the marketplace, to see how effective the business is in relation to it's competitors. (we examine how to look at your business in relation to competitors in the marketing section PEST/SWOT models)

However in the long term a business needs to look at it's core competencies to see how it can maintain it's position in the marketplace. 

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Core competence can be described as the collective learning and knowledge a business has. The works of  Hamel & Prahalad (1989) first brought the notion of core competencies to attention. They take the view that the market, environment, and industry of any business is always turbulent, therefore making it impossible to develop a strategy. The logic of the core competencies was based on applying SWOT and Porter models to identify resource based strategies for growth, in other words your business strategy should be based on the organisations internal environment. 

Core competencies are present throughout any business, they are often described in relation to competitors, we would like to state that we see core competencies as being internal to the business. Again the marketing section observes a business in relation to competitors.

The overriding aim of applying core competency logic to your business is:

  1. Concentrate your business efforts, firstly to those areas where you excel - Your core competencies, make sure these competencies are harnesses and developed, protect them against competitors.

  2. Develop your business into other areas which are not the businesses main area of expertise. This often phrased as basing your business strategy as 'building blocks of strategic intent'.

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