This article discusses core competency in relation to business, it is the foundation for sharpening a company’s competitive edge and it guides brand reputation, business growth and marketing strategy. Its originated as a resource based approach to corporate strategy, introduced by C.K Prahald and Gary Hamel where they describe various core competencies as meeting three conditions. The three conditions are: provide consumer benefits, not easy for competitors to imitate, and can be leveraged widely to many products and markets. Core competence has evolved over the past 30 years but remains based on the exploitation of several competitive advantages. This makes it challenging for other corporations to duplicate a merchandise or service. Successful businesses tend to have more than one of the subsequent core competencies: quality, innovation, customer service, marketing and worth.
A company with solid core competencies is Walmart, it’s the greatest retail store in the world, with worldwide sales of above 514 billion dollars in 2019. Its proficiencies include, immense purchasing control and supply chain management. Due to its mantra “everyday low prices” they are continuously pressuring suppliers to drop wholesale prices and has a huge system of distribution centers with and well-organized system of inventory organization. Apple is the prime corporation in the world with 961.3 billion in market value, it has over 137,000 employees and produced $260 billion in income. Their resilient aptitudes are innovation, marketing and brand recognition.
Apple has an elongated past of evolving exclusive and ground-breaking technology merchandises including Mac computer, iPhone, iPad and apple watch. Even when they are not the first to develop a new invention, they are able to engineer it in a irreplaceable manner and creating an vast commercial success. It has tremendously brand recognition where people all over the world recognize their products once they see them. Numerous customers are faithful to the brand and will purchase everything that is Apple, especially when new models come out, they will stand in line for hours and even days to get the new release. Another example is Costco, major membership-based warehouse chain with 785 warehouses worldwide, over $149 billion in sales. They pride themselves in customer service, value and employee acknowledgement. Costco is well recognized for taking attention of its personnel by compensating a living wage, offering health benefits and proposing generous retirement bundles.
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There is many more examples of businesses that have great core competencies to make their corporation prosperous. A company needs to be competent to be able to keep running because someone else can sell similar products and could gain a better brand reputation which can essentially make your business go bankrupt. An organization has to be able to meet the three conditions for core competencies to be able to be successful and if it is not then they must work on their tactic to meet those conditions.
