Gary Hamel's Core Competence

1056 Words5 Pages
Core competence idea was introduced into management literature in 1990 by C.K. Prahalad and Gary Hamel. Core competencies are the collective learning in the organisation, especially how to coordinate diverse production skills and integrate multiple streams of technologies then this the communication, involvement and a deep commitment to working across organisational boundaries that does not diminish with use.
Core competence is important for organizations to focus on their competences and draw their strengths from this when they want to get ahead of their competition. core competence model, which was designed by Gary Hamel and C. K. Prahalad, organizations can move into new markets and market growth possibilities more easily by using their
…show more content…
This is to give a commitment for working across organizational boundaries. Organizing that around core competencies requires a radical change in corporate organization. The first step requires identifying core competencies, which meet these three requirements: they provide potential access to a wide variety of markets, make a contribution to the customer benefits of the product, and are difficult for competitors to imitate. The next step is to redesign the architecture of the company and provide an impetus for learning from alliances and a focus for internal…show more content…
Different from the material capital, the core competence of enterprises will not be lost in use and sharing, and will continue to grow in this process. According to Prahalad and Hamel 's view, the basic characteristic of the core competence is mainly embodied in three aspects: First of all, the core competence should reflect the long-term customer 's value, a key contribution to the core interests of customers; secondly, core competence must be unique ability, and is difficult to be imitated by competitors and alternative; third, the core competence should be extended to wider areas of the market. The core competence is hard to imitate, enterprise core competence for the attention and research, in fact is the competition advantage to gain and maintain the competitive advantage of enterprises, and to the sustainable development of
Open Document