The Core Competence of the Corporation

1
The Core Competenceof the Corporation

• C.K. Prahalad Gary HamelHarvard Business
  Review,
• May-June, 1990

2
The Core Competenceof the CorporationC.K.
Prahalad Gary HamelHarvard Business Review,
May-June, 1990

• The collective learning and competence of an
  organization, at the production / operations /
  technology level.

3
Core Competence Perspective

• Production / Operations / Technology should not
  be thought of as end-product specific.
• Core Competencies infuse the majority of an end
  products benefit, but are not specific to any
  particular product

4
Competing through Competencies

• Competitive Advantage stems from leveraging Core
  Competencies across varying products and markets,
  and in new ways.
• In the core competencies underlying them,
  disparate businesses become coherent.

5
The Roots of Competitiveness
6
Core Competences are

• The appropriate level for top management
  strategic attention, and for global competition.
• The foundation for new business development.