The Virtual Company and Core Competences

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The Virtual Company and Core Competences
Jaap de Jonge, Editor
It's interesting to consider a Virtual Business when you are thinking about Core Competences:
1. The Virtual Company focuses as much as possible / entirely on its own Core Competence (Typically Marketing, Visioning, Innovation)
2. It outsources all it's other functions to strategic partners, who are very good at performing those functions or even have that function as their core competence.
The virtual company therefore could be said to derive its strength primarily from the way it deals with core competences...

Virtual Outsourcing...
Steve Jackson, Member
Is there a particular case that comes to mind where a virtual organisation has enjoyed incremental success having outsourced its functions (and which ones?) and chosen to focus towards its core competence(s). And what were these competences? How were they for instance, able to benefit going forward, as a direct consequence of releasing control of specific aspects of their operations?
Or does virtualisation in this context remain merely conceptual as many have suggested?

Outsourcing Example
Jaap de Jonge, Editor
I have seen Nike mentioned as an example of succesful outsourcing of many functions except for marketing which is viewed as its core competence.
By the way the outsourcing is not virtual, but indeed very real and physical. A company can be considered virtual if it outsources almost all of its processes or functions.



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