A core competence is something unique that a business has, or can do, strategically well.

The concept was developed by Prahalad & Hamel

”The key to competing in the future is building, deploying, protecting and defending core competencies…”

When linked to SWOT Analysis, core competencies are a strength

The Three Key Conditions

If a quality meets all three conditions, then it is a core competency.

  • Does it provide consumer benefits?
  • Is it easy for competitors to imitate? (NO)
  • Can it be leveraged widely to many products and markets?

Prahalad & Hamel’s suggest

  • Outsource areas that you don’t specialise in
  • Focus on the core competencies