CORE COMPETENCIES Flashcards
What are core competencies
The key strengths of a business that can be used to develop their unique selling point
You can identify an organisations from the strengths in the SWOT analysis
Core competencies are the certain strengths and competences an organisation has that is hard for another organisation to have.
What could core competencies include
Supply chain management (Tesco are able to get the product from the supplier to their stores extremely quickly - Especially with their automatic systems that order stock from the suppliers automatically once they sell out in a store - which means that they don’t have to employ people to manage stock levels)
Product design (Designing products around what people want and need. For example: Lamborghini, BMW, Mercedes - These companies allow customers to tailor their products to
Customer service - This can make them stand out: Virgin could be a good example of this
Understanding a particular market niche: For example Ferrari: Their products have evolved over the years to create a hard to match sports car experience, as they picked the sports car industry, and stuck with it, so that they could create their most recent products.
Unique skills of staff - Unique skills of staff that are either hard to find or only unique to one organisation, can add value to the organisation. For example a professional athlete being a personal trainer at a gym would increase the value of himself, and gym, and if on a profit sharing scheme it would increase the revenue of the business, and in the long run potentially bring more professional athletes into the business.
What are the benefits of identifying and develping core competentieds
Improve reputation - competitive advantage
Increasing sales
Increase competitiveness
Increase added value
Access new markets
