7.3b - Core Competences

Question 1

Core competences definition

Answer 1

The unique abilities of a business that enable it to achieve a competitive advantage

Question 2

What are the three ways of assessing whether something is a core competency outlined by Prahalad and Hamal?

Answer 2

• Does it make a significant contribution to the benefits that customers believe they are receiving?
• Does it help to provide potential access to a wide variety of market?
• Is it difficult for competitors to replicate?