Core Competency Essay

1687 Words 7 Pages
Core competencies are the most significant value creating skills within a company and key areas of expertise that are distinctive to a company and critical to the company's long-term growth. Core competencies are the pieces that a company is superior than its competitors in the critical, central areas of the company where the most value is added to its products. These areas of expertise may be in any area from product development to employee dedication. A competence which is central to business's operations but which is not exceptional in some way is not considered as a core competence, as it will not generate a differentiated advantage over rival businesses. It follows from the concept of core competencies; resources that are …show more content…
The game is changing. It is not just about math and science anymore. It is about creativity, imagination, and, above all, innovation. “Without creativity, there is no innovation. As every good gardener knows, you can’t rely on the same old flowers season after season. They die. New seeds are needed to rejuvenate the garden and stimulate growth” (Dundon, 2002). What is unfolding is the commoditization of knowledge. “The Theory of evolution says continuous change is inevitable and if one does not evolve, they will perish” (Darwin's theory of evolution, 2006). This is true for businesses and companies. If companies do not evolve then their survival is in jeopardy. A key to survival is a core competency that the company has built over time. These competencies are what a company is built upon. Companies that are successful and continue to survive have shown that they focus on building core competency and in turn their ability to innovate increases. Based on their core competencies these companies have built products (line extension) or services (redirection) that can be applied to variety of applications. Successful companies are eager to build competencies that will help them become world leaders. They do not solely focus on products alone; they focus on System Thinking, how one piece affects the entire system (Dundon, 2002). This type of thinking shows a focus on core. A piece of the system is most likely
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