Core competency free essay sample

According to this article, core competencies involve many different people on many different levels. Core competencies are concepts that are enhanced as they are used; unlike physical assets of the company that become outdated with time and deteriorate, core competencies develop as they are shared and applied throughout. The concept has three key requirements for a company to view it has a central means to its way the company or employees work. One requirement for a core competency is that it is not easy for competitors to imitate. A company like Apple with its innovation is extremely difficult for other companies to imitate and try to compete with. As companies release similar products to Apple, Apple develops products with newer and more innovated products that surpass competitor’s efforts. The next requirement for a core competency is that it allows for the company to reuse it for a wide variety of markets and products. We will write a custom essay sample on Core competency or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Mobile applications, or apps, can be used as an example for this requirement as apps can be used on various products for a wide variety of markets and Haier can be used as an example as its products spread throughout vast markets. Apps were first introduced for mobile phones by Apple but were later conformed for use by Amazon and Google Play for Android products, Blackberry for its Blackberry products, Samsung Apps Store for Samsung products and Windows stores for Microsoft products. Apps were first introduced as a gaming hub but have now developed into focusing on various other categories such as business, cooking and lifestyle, music and many other genres one would wish to read or interact with. The last requirement for a core competency is that it contributes to the customer’s benefit of the final product. An example of this would be Honda’s engines. Honda is known as the engine company for the automobile industry and although others have tried, competitors have yet to succeed. Honda has been in the business of engines for longer than any other company which gives it a better competitive advantage. It is also known for its engines having less down time, lower costs to own, better performance than competitors, reliability and quality, environmental focus and nationwide parts and service support. When it comes to engines, Honda has the industry vastly beat. After reading this article, it is clear that core competences are a major factor in the success of a company within a certain industry. Without core competences, companies would lack competitive advantage and Porter’s Five Forces would be obsolete as there would be no bargaining power for buyers or suppliers as companies would be on equal playing fields, and threats of new entrants and substitutes would be high because there would be nothing to hold new companies from emerging with similar or duplicated products/