CORE COMPETENCE ANALYSIS.

This is the process of finding a company's underlying characteristics and attributes

that are distinctive and serve to set it apart from its competitors, as well as how to
leverage these core skills to create lasting competitive advantage.
True core competencies must be applicable to a broad range of prospective markets
that the company can access, be difficult for competitors to mimic and be relevant
to consumer needs to the point that customers feel strongly motivated to buy your
product or service.
Customers will want to choose products and be willing to pay extra for them if
they can be provided with something that is incomparably good.

A Guide to Identifying Core Competencies.

There are three ways to assess if a skill is a legitimate core competence. If the
answer is yes then you might have identified a core competency.

 Does it offer advantages to consumers? - A core competency must produce

something in the market that has the potential to significantly influence the
client to buy your product. If it doesn't, it doesn't count as a core talent and
has no bearing on your ability to compete.
 Is it challenging to copy? - A key competency should be challenging for
rivals to copy. This enables your products to maintain their distinctiveness in
the market.
It's crucial to make investments in the ongoing development of your core
skill. You can maintain your competitive advantage going forward by doing
this.
 Is it capable of being extensively leveraged?- A core competency has to be
usable across a wide range of goods and marketplaces.

How to develop core competence.

1. Make a list of the issues that matter most to your clients. Incorporate both
items that are crucial right now and those that you believe will still be
essential in the future.
 2. Examine each item on your list to find the competencies that support it.
3. List the skills you already possess in a brainstorming session. To help you
determine your competencies, a SWOT analysis' "Strengths" section can be
helpful.
4. Compare all the core competency exam items to the questions:
Does it offer advantages to consumers?
Is it challenging to replicate?
Is it capable of broad leverage?
5. Evaluate the outcomes.
Consider how your existing key competencies may be improved and
expanded upon if you have already recognized them.
Consider which core competency you should focus on developing if you
lack any core competencies but have discovered potential ones.
Criticism of core competencies.
A company's ability to adapt may be hampered by a focus on core capabilities.
The organization suffers because the human aspect is disregarded. How can an
accountant who is hired outside the organization feel motivated to provide the
finest service possible?
It may be overly ambitious to outsource nearly all non-core tasks. As a result of
talents that the company formerly possessed but have since lost, overzealous
outsourcing might cause a loss of competitiveness.
Example of core competence.
Use-centered design and an integrated software and hardware ecosystem are
among Apple's key strengths. Competitors will find it extremely difficult to
produce laptops and phones that can sell for a similar high price due to the design's
strength.