Lesson 1, Topic 1
In Progress

What are Core Competencies?

Lakshmi Datti December 23, 2021

Companies today outsource less-critical activities and nurture the resources and competencies that make up the essence of the business to sustain their core competencies. A core competency has three characteristics: (1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits; (2) It has applications in a wide variety of markets, and (3) It is difficult for competitors to imitate. To face the volatile business environment, businesses also need to realign themselves to maximize core competencies by (1) (re)defining the business concept or “big idea”; (2) (re)shaping the business scope, sometimes geographically; and (3) (re)positioning the company’s brand identity.