Core Competence Assignment Help

In the year 1990, C.K.Prahalad and Gary Hamel described the idea of core competency. The idea that each organization has some capability in which it excels and that the business should focus upon opportunities in that area, letting others go or outsourcing them. Further, core competency is difficult to duplicate as it involves the coordination and skills of people across a variety of functional areas or processes used to deliver value to customers. Through outsourcing, companies expanded the concept of the value chain within the entity with some elements. Core competency is a part of that branch of strategy known as the resource based view of the firm, which postulates that if activities are strategic then the organizations capabilities and ability to adapt and learn are also strategic.

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