A core competence should be difficult for competitors to imitate. A core competence must be unique. For example, Dell has a very strong position in personal computing market which include core competencies like online customization of each computer built, good manufacturing and distribution quality, minimization of working capital in production process. Core competencies have the capacity to desegregate and synchronize different groups in the company. While a company may be able to employ perfectionists in a particular technology, by doing so it does not have a core competence in that technology, it is the synchronization between all the groups involved in bringing a product to market that results in a core competence.
For operating and developing a business is not easy especially for Toyota. Toyota is a company in the automotive industry so making a major decision is usually taken very carefully, such as building a car factory in Europe, it is not easy. First, Toyota wants to develop and expands its business on a large range really difficult because of the capital for the automotive industry is very large. North America is the largest foreign market for more than 60% production carried out at the local factory and foreign market is the second largest in Europe with more than 26% of products are manufactured and sold here. Toyota visible growth potential in this market is a matter of urgency and necessity, they have built a new factory here.
Innovation leads to distinctive and attractive products for all market sectors. Thus, Toyota accomplishes its core strategy as Toyota is one of the most innovative auto companies and has a strong culture that is focused on constant innovation. The company is known for its innovation processes. The company was the first to introduce Kaizen, Kanban and Total quality Management systems widely in their organization (Ovidijus J., 2013). The company was the first to manufacture and sell hybrid cars as well.
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
Toyota Motor Corporation is a Japanese multinational automotive manufacturer company. Which is the fifth-largest company in the world by revenue, Toyota is the world's largest automotive manufacturer company with a strong work ethic, positive brand name, and positive competitive culture. Toyota conducted a SWOT analysis to audit its company and its environment in order to make marketing decisions to maintain the value of its products. One of Toyota’s strengths that makes their business so successful business is their strong work ethic. According to document C Toyota is sticking to their core values and aren't cutting corners resulting in rapid growth.
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation. A firm that utilized cost leadership is Costco.
Core competence idea was designed by Gary Hamel and C. K. Prahalad, to introduced into management literature in 1990s, for organizations can move into new markets and market growth possibilities more easily by follow the core competences think. This learning are collective in the organisation, especially about the knowledge how to coordinate diverse production skills and integrate multiple streams of technologies, then this communication, involvement and a deep commitment to working in organisational boundaries that does not diminish with use. Then this thing is important for organizations to focus on their competences and draw their strengths from this when they want to get ahead of their competition. Unlike physical assets, which do deteriorate over time, competencies are enhanced as they are applied and shared. The core competence knowledge is specialized because that are so difficult to imitate by other organization.
K. Prahalad and Gary Hamel. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace". Core competencies fulfill three criteria: Provides potential access to a wide variety of markets. A Core Competency is a deep proficiency that enables a company to deliver unique value to customers. It embodies an organization’s collective learning, particularly of how to coordinate diverse production skills and integrate multiple technologies.
Toyota , highly successful Japanese car manufacturer , it's a prime example of an organization that takes a customer and marketing view of its business . Toyota was started in 1937 with a name Toyota motor corporation which is now know all over the world , established as an independent company . The growth of Toyota has been one of the great success Japanese stories . Toyota industries develops and manufactures automobile such as vehicles ,car air conditioning , and devices . Toyota vision statement is to be the worldwide leader in the customer values .
WEAKNESSES Weaknesses are also internal factors that will derail you from making progress. When doing a SWOT analysis in marketing, you need to consider which things will make your marketing strategy look weak and unconvincing. The following factors can be called weaknesses: • Poor distribution – If you have a poor distribution channel for your products then you are likely to suffer. If the customers are not getting your products on time or even on the market, then that’s an obstacle for your marketing strategy. • Not distinguishable feature – You cannot stand out in the market if your products are no different from the rest of the competitors.