Core Competencies.Doc

2561 Words11 Pages
Introduction Today in Hong Kong, many organizations have their own business strategy that helps them compete successfully in the markets. There is a proverb, “to know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat”. The competitive advantage is a set of objectives, plans, and policies. One of the most important factors of developing a business strategy is identifying the organization’s core competencies. Therefore, an important part of strategic planning is identifying and predicting the core competencies. Core Competencies According to Prahalad and Hamel (1990) “Core competencies are the collective learning in the organization, especially how to coordinate diverse production…show more content…
However, the status of the Kowloon Dairy has not been changed, due to its reputable corporate image. It is the oldest brand in the market and customers are used to choosing Kowloon Dairy. Kowloon Dairy not only have higher nutrition value than its competition, but it also has good quality control. From the selection of feed, they monitor the living and health conditions of their dairy cows to ensure they deliver good tasting and nutritious fresh milk to their customers. According to the market research by “AC Nielson”, the sale volume of Kolwoon Dairy’s Hi-Calcium, Low Fat Milk is the highest in Hong Kong for the year for consecutive Year 1999-2004. There are limitations on the locations because larger farms are required to provide to the mass of cows. And also, because the storage period of fresh milk is shorter (quickly to expire), keeping the milk fresh causes a higher cost because of prompt distribution. People more likely to buy the ice-cream product in summer more than in winter and it is the main competitive advantage dependant on the milk production. This could make them slow to diversify into other sectors should the need arise. Opportunities and Threats : Between 1979-1980, Kowloon Dairy joint venture with the Australia Dairy Food Production Co., Ltd. From this moment onwards, Kowloon dairy ice-cream entered to
Open Document