Identifying a Core Competence

Core Competence
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Identifying a Core Competence

How can a firm identify its CC?

  Jaap de Jonge
Editor, Netherlands

Identify a Core Competence

See summary text at "Building a Core Competence" (1-2-3). A well-known example is Sony's competence in miniaturization. Sony uses this capability in multiple product lines (audio, video, photo, etc). Customers appreciate small electronic devices. The miniaturization skill is hard to imitate by other companies.


CC technique

Yes, you have the three tests and Sony is an example... But I'm looking for a more specific technique how to identify a core competency in practise. If it exists?


How to identify your CC

A firm has to identify what its core competence could be for a particular product segment, given the:
- Product life-cycle and maturity curve
- Consumer expectations
- Technology developments and sustainability
- Competitive environment
A firm may not have any core competence but may still be successful in a market for many years. For example if the product technology and consumer class have both matured.
But certainly the sustainability of core competence will decide how profitable the organization will be.


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