Core competencies grow form a resource-based view which have implications at the strategic level; the organisations should thoroughly work upon recognising their core competence and developing them to gain sustainable competitive advantage Srivastava, Using Apple as an example, from the late s throughwithout Steve Jobs, Apple lost sight of their core competency and almost failed as a company; if an employee who is considered to be the core competence leaves the organisation, the core competency departs as well.
Core skills and qualities which are prioritised in times where they are no longer competitively relevant can also act as a weakness. In order to prevent your strengths from becoming weaknesses in the future, it is important that managers understand the organisation, and fully assess its strategic intent.
Their impressive designs and innovation skills are what gives them the ability to penetrate a lot of different markets in ways that no one imagined they would.
Core competency Core competency The concept Core competencies essay core competency is derived from the article by C. Icarus was so engrossed with his unique wax wings that he flew close to the sun, melting his wings and crashing to his demise. For example, mp3 players and tablets were already in pre-existence before Apple introduced the iPod and iPad but, their unique design is what made theirs exceptional and a wild success.
Rao, Rao and Sivaramakrishna, Customers need to be able to recognise a consistent difference in substantial qualities between the business products and Core competencies essay of their competitors Agha, Alrubairee and Jamhour, Prahalad and Gary Hamel published in Harvard Business review in Managers are mistaken when they believe that the core competence of the organisation is free from external threats Therefore, it is vital to recognise that it is possible for organisations to understand that they may bring about their downfall through their own successes.
Executives should develop a point of view on which core competencies can be built for the future to revitalize the process of new business creation.
The case of Nokia can be cited here; Nokia had achieved early success because of Core competencies essay mobile phones and back in the s, they had competitive advantage and dominated the mobile phone industry; but then the company became so obsessed with the details that they lost track of market realities that when Apple emerged with the concept of the iPhone, customer preferences changed and by the time Nokia caught up with the smartphone trend, it was too late.
This can be applied to management when successful organisations fail because, they ignore their core competencies and become too satisfied with their success.
Their core competency lies in their exceptional design which seems to meet all the three criterion of core competencies which Prahaland and Hamel suggested. If we look at some other organisations which have encountered embarrassing failures, it is obvious that Icarus Paradox is in play.
With Core competencies essay, managers can also decide which of their skills are in need of further development and may choose to outsource some activities so as to free more resources and be able to focus more on their core competencies.
Should make a significant contribution to the perceived customer benefits of the end product. Just complete our simple order form and you could have your customised Business work in your email box, in as little as 3 hours. Competence building is therefore an outcome of strategic architecture which must be enforced by top management in order to exploit its full capacity.
Miller also suggested that the reason organisations fall from their competitive advantage can be found in this decline which he termed as the Icarus Paradox Rao, Rao and Sivaramakrishna, Nokia was blinded by their accomplishments and did not foresee such a drastic change in the organisational environment; they seemed to have overrated their importance in the industry and neglected other competitors and that ultimately led to failure.
This simply means that the core competencies are those unique strengths of an organisation, that span over numerous markets and or products Hafeez et al. In order to provide access to a wider range of markets, the main core competencies of the organisation should be those skills which create opportunities and an allowance for the conception of new ideas and entry into new markets to retain competitive advantage Kachru, Unlike physical assets, they do not deteriorate or diminish with use over time but instead, they get better as they are shared and applied Prahalad and Hamel However, the theory by Parahalad and Hamel contends that core competence is a collection of all the learning in the organisation mainly, the manner in which various production skills are coordinated and the streams of technologies are integrated.
Most successful organisations often find it difficult to sustain the qualities and skills which brought them their success to begin with. The core capability is the management ability to develop, out of the core competences, core products and new business.
The Icarus paradox is derived from a Greek myth of which Icarus and his father Daedalus were imprisoned and so, Daedalus made wings of feathers and wax to help them escape.
In a race to achieve cost cutting, quality and productivity, most executives do not spend their time developing a corporate view of the future because this exercise demands high intellectual energy and commitment. Thus, their strategy intent has to change from competing for leadership of products and services to competing in leadership of core competence Agha, Alrubairee and Jamhour, The use and understanding of the concept of core competences can be very important to enterprises.
A suitable outcome of the research by Hafeez et al is that even though a company considers its core business to be manufacturing or engineering, the core competencies of that company exists in the sales and marketing of the product. Difficult to imitate by competitors.
The difficult questions may challenge their own ability to view the future opportunities but an attempt to find their answers will lead towards organizational benefits.
It may be that the same predisposition plagues executives as shown in the above example of Nokia. Their managers implemented strategies which produced a reputation for the size and quality of their products and also room for growth for the organisation.
There are UK writers just like me on hand, waiting to help you.
This is very important as competencies are what organisations are built upon therefore, a business is at risk of failing when organisations fail to progress Prahalad and Hamel, According to Prahalad and Hamelthere are three tests which are useful for identifying a core competence.
Icarus died due to the fact that he depended too much on his existing resources and capabilities.Essay about Walmart Core Competencies Words Oct 30th, 4 Pages Wal-Mart’s Core Competencies Wal-Mart is a company that has taken its core competencies, which are the capabilities the firm emphasizes and performs especially well while pursuing its vision (Ireland, Hoskisson, Hitt, ), and turned them into competitive advantages.
Read this essay on Core Competencies.
Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more. Tesco Core Competency CORE COMPETENCIES AND DISTINTIVE CAPABILITIES A core competency is a skill or expertise the organization has or anything that a firm can.
This essay starts by briefly describing how the term core competencies was established before looking at why it is necessary to identify core competencies within an organisation.
The four criteria used to identify core competencies is discussed with an analysis of each followed by an overview of strategy. Core competencies are the pieces that a company is superior than its competitors in the critical, central areas of the company where the most value is added to its products.
These areas of expertise may be in any area from product development to employee dedication. Core competencies are specific factors treasured and seen by a company to be central to the way its employees or itself work and conduct itself. Core Competencies Introduction Core competencies are those capabilities that are critical to a business achieving competitive advantage.
The starting point for analysing core competencies is recognising that competition between businesses is as much a race for competence mastery as it is for market position and market power.Download