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  • The Core Competence of The Corporation: By: C.K. Prahalad and Gary Hamel

    Transféré par

    Vaibhav Rastogi
    227 vues15 pages
    The document discusses the concept of core competencies and their importance for corporations. It argues that companies like NEC that conceive of themselves in terms of their core competencies will be more successful than companies like GTE that do not. It provides guidelines for identifying a company's core competencies, building upon them through investments and alliances, and cultivating a culture focused on continuously developing and applying core competencies. Developing and leveraging core competencies allows companies to access new markets, build products at lower cost, and provide superior customer value.

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    nec_gte

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    The document discusses the concept of core competencies and their importance for corporations. It argues that companies like NEC that conceive of themselves in terms of their core competencies will be more successful than companies like GTE that do not. It provides guidelines for identifying a company's core competencies, building upon them through investments and alliances, and cultivating a culture focused on continuously developing and applying core competencies. Developing and leveraging core competencies allows companies to access new markets, build products at lower cost, and provide superior customer value.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    227 vues15 pages

    The Core Competence of The Corporation: By: C.K. Prahalad and Gary Hamel

    Transféré par

    Vaibhav Rastogi
    The document discusses the concept of core competencies and their importance for corporations. It argues that companies like NEC that conceive of themselves in terms of their core competencies will be more successful than companies like GTE that do not. It provides guidelines for identifying a company's core competencies, building upon them through investments and alliances, and cultivating a culture focused on continuously developing and applying core competencies. Developing and leveraging core competencies allows companies to access new markets, build products at lower cost, and provide superior customer value.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 15

    The Core Competence of the Corporation

    By: C.K. Prahalad and Gary Hamel

    Make-Up of the Paper


    1. The Idea in Brief
    - NEC vs GTE

    2. The Idea in Practice


    - Identify Core Competencies - Build Core Competencies - Cultivate a Core Competency Mindset

    Case Study of NEC vs GTE

    Case Study of NEC vs GTE

    Case Study of NEC vs GTE

    WHY??
    NEC conceived of itself in terms of CORE COMPETENCIES, GTE did not!!

    Case Study of NEC vs GTE

    Case Study of NEC vs GTE

    Identify Core Competencies


    Articulate a Strategic Intent that defines your company and its markets. Identify Core Competencies that support that Intent 1. How long could we dominate our business if we did not control this competency? 2. What future opportunities would we lose without it? 3. Does it provide access to multiple markets? 4. Do customer benefits revolve around it?

    Identify Core Competencies


    How long could we dominate our business if we did not control this competency?

    Short-run: Competitiveness derives from the Price/ Performance attributes of Current products. Long-run: Competitiveness derives from an Ability to Build at Lower Cost and at Faster Speed than Competitors + Core Competences that spawns unexpected products.

    Identify Core Competencies


    What future opportunities would we lose without it?

    In 1970s and 1980s, American and European companies such as GE, Motorola, GTE, Thorn and GEC chose to exit the colour television business which they regarded as mature. They lost out on a $20-billion-a-year opportunity that HDTV represents in the 1990s.

    Identify Core Competencies


    Does it provide access to multiple markets?

    1) Casios core competence with display systems allows its success in calculators, laptop monitors, miniature televisions and car dashboards. 2) 3Ms competence with sticky tape has dreamt up businesses as diverse as Post-It notes, magnetic tape, photographic film, pressure-sensitive tapes and coated abrasives.

    Identify Core Competencies


    Do customer benefits revolve around it?

    Example: Hondas competence with high-revving, lightweight engines offer multiple consumer benefits.

    Build Core Competencies


    Invest in needed technologies. Infuse resources throughout business units to outpace rivals in new business development. Forge strategic alliances.

    Cultivate a Core-Competency Mindset


    Stop thinking of business units as sacrosanct. Identify projects and people who embody the firms core competencies. Gather managers to identify next-generation competencies.

    Pointers to Take-away
    Core competence is about harmonizing streams of technology, organization of work, and the delivery of value. Cultivating core competence does not mean outspending rivals on R&D or vertically integrating businesses. Maintain world manufacturing dominance in core products, and you will reserve the power to shape the evolution of end products. Top managements real responsibility is a Strategic Architecture that guides competence building. A company is capable to compete only if it is conceived of as a hierarchy of core competencies, core products, and market-focused business units.

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