COMPETITIVE ADVANTAGE AND CORECOMPETENCIES :
Competitiveadvantage means working in an efficient and productive manner in order to obtainan advantage over the competitors.
Companiesshould strive to develop unique resources in order to gain a lastingcompetitive advantage. In order to gain competitive advantage, companies shouldconcentrate their resources on strength areas and abandon the weak areas.
Corecompetency is a bundle of specific knowledge, skills, technology, capabilitiesof an organization which enables it to create value in the market, which othercompetitors cannot do in the short-term. Core competency is the most importantfactor kept in mind while discussing the corporate strategy.
Mr.Prahalad and Mr. Hamel have suggested the following three factors which help inidentifying the core competencies in a company:
i)Core competence provides potential access to a wide variety of markets.
ii)Core competence should make a significant contribution towards the customer
iii)Core competency should be difficult for competitors to imitate.