MM 07 Core Competence

According to Prahalad and Hamel's definition, core competencies refer to the skills that enable a company to deliver additional customer value. Core competencies come in many forms; for example, a technological edge, a specific manufacturing method, resource availability, or even excellent project management. In most cases, these skills develop over a longer period of time. To identify core competencies, Prahalad and Hamel propose three criteria that must be met:
1. The competency provides potential access to a variety of markets. 2. The competency should make a significant contribution to the perceived customer value of the final product.
3.The competence should be difficult to copy by the competition.

Management strategist Jay Barney introduced the VRIO method as an extended test in 1991. It contains four questions, which, if answered correctly, can be considered a core competency. See document.

Current events:

• globalization
• Fall of the Berlin Wall
• End of the Cold War
• United Germany
• George Bush Presidency
• Second Gulf War
• End of the Soviet Union
• End of apartheid in South Africa
• The Diddl Mouse is born
• Take That is founded
• The first Wacken Open Air takes place