10588028680?profile=RESIZE_710xWith widespread Disruption consistently causing serious risks to the technology infrastructure and Operating Models of organizations, it is an unremitting challenge for senior management to set up a business that is proficient at introducing products and services that are in accordance with consumer needs and of highly desired utility. This can be actually achieved by obtaining the competencies crucial to create top quality, difficult-to-replicate products.

The collective organizational knowledge needed to produce market-winning products or services is referred to as core competencies. Specifically, Core Competencies necessitate the alignment of various manufacturing abilities and the integration of multiple technology streams into the making of final products. In this technological era, the proficiency of senior leaders can be analyzed by their capacity to distinguish, nurture, and take advantage of Core Competencies vital for growth.

The development of Core Competencies needs considerable collaboration, involvement, and determination. To achieve this, experts advise instilling the notion that a company is more than a collection of separate departments.

Prahalad and Hamel, two prominent business scholars, initiated the Core Competency theory, which lays the foundation for how a modern organization should function and delegate. The model requires that leaders see the organization as more than a collection of separate Strategic Business Units (SBUs).

The framework enables management to optimize business and market demands, as well as recognize internal units that are imperative for Business Continuity and non-core functions appropriate for outsourcing.  Leveraging Core Competencies across a company's entire portfolio of technologies and production capabilities, the Core Competence Theory enables the creation of high quality products at a pace quicker than the rivals. The Core Competence Model underscores the incorporation of individual, collective, and applied knowledge, skills, and behaviors.

The Core Competence Theory is advantageous for the organizations because it encourages a culture of collective beliefs, learning, and wisdom, as well as a sense of community among partners and customers.

The Core Competence Model entails four variables listed below:

  1. Resources
  2. Capabilities
  3. Competitive Advantage
  4. Strategy


Let's delve into the specifics of these variables.


The first variable relates to the resources necessary for developing and acquiring competencies and technologies.


The next variable assesses the opportunities available for building Core Competencies.

Competitive Advantage

This variable pertains to overcoming any obstacles in order to attain the highest possible market share for core products.

Interested in learning more about the key variables of the Core Competence Model? You can download an editable PowerPoint on the Core Competence Model here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight — it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd


Votes: 0
E-mail me when people leave their comments –

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!