The Core Competence of the Corporation (See Comp QUOTE p13 re CAA)

Abstract

Business should be bundle of competencies. Core 3 tests 1)provides potential access to ultiple markets, 2) make a significant contribution to end product, 3) difficult for customers to imitate - will be if complex harmonization of indiviudal skills. Many companies cut core competencies for cost cutting and went to outsouring. Cant have intelligent alliance strategy without identifying tis core competencies. With plan can absorb learning from alliances. Can also loseby forgoing opps to establish emerging competencies. Need to think of core product - not end branded product and excel in each. Allows delelopment competence and allows company to shape evolution of end markets If stuck in SBU's will miss hybrid innovations. Compensation scheme must cross competencies. Rotata people.