7.3b Core Competences

Question 1

Core competences definition

Answer 1

The unique abilities of a business that enable it to achieve a competitive advantage

Question 2

What is a key strategy of core competences?

Answer 2

Outsourcing

Question 3

Businesses must not assume what when it comes to core competences?

Answer 3

That they will remain as a permanent fixture

Question 4

What are the three ways that Prahalad and Hamal outlined to assess whether something is a core competency?

Answer 4

• Does it make a significant contribution?
• Does is help to provide potential access to a wide variety of market?
• Is it difficult for competitors to replicate?