CORE COMPETENCIES COMPETITIVE ADVANTAGES
Favorable conditions compared to rivals Specific set of skills or knowledge
Limited scope and short term measure Far-reaching scope and long term measure
Places company over rivals in one market Allows company to gain presence in multiple markets
CORE COMPETENCIES + COMPETITIVE
ADVANTAGE
= LONG-TERM
SUCCESS
COMPETENCY TREE
04
Business 2
Business 3
06
02 05
Leaves = End products
03
Branches = Core products
07
Trunk = Core business
08
Business 1
01
Roots = Core competency
Competence 1 Competence 2 Competence 3 Competence 4
CORE
COMPETENCY
ANALYSIS
1 1
Identify how to develop and
If you already have a core
improve each core
competency
competency
SITUATIONS
ACTIONS
2 2
You have no core competencies but Identify which core competency it
have identified potential ones makes sense to invest in and
develop
3 3
You have not identified any Involve more people in the discovery
existing or potential core process, such as customers or outside
competencies facilitator
CORE COMPETENCY
DEVELOPMENT PROGRESS
1
Define internal capabilities that are strategically positioned to
deliver sustainable value.
2 Perform a core competency review throughout the organization and
evaluate its strengths and weaknesses.
3 Compare with other companies with similar capability to ensure
development of key competencies are targeted.
4 Establish a roadmap for the organization thereby setting
goals for competence building.
5 Promote all-inclusive participation in development of core
competencies across the organization.
68% 30% 65% 70% 25%
CORE COMPETENCIES ANALYSIS
1 Ability to produce cutting edge and trend-setting designs
2 target high-value low-maintenance customers with database technologies
3 Quality management programs for design and manufacturing
4 Respond rapidly to competitive product launches
CORE COMPETENCY TABLE ANALYSIS
COMPETENCIES DESCRIPTION IMPORTANCE DEFENSIBILITY COMP. STRENGTH
What are our key strengths
What does this competency How strategic is it for the future? Can competitors copy it? 15+ = strategic capability
(technologies, assets, business model,
allow us to do ? (1=Low; 10=High) (1=Easy; 10=Hard) & likely differentiator
capabilities etc.) ?
10 5 15
4 2 6
2 4 6
1 10 11
1 1 2
1 1 2