Core Competencies

A concept by Prahalad and Hamel describes a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace.

• Criteria:
  1. Provides potential access to a wide variety of markets.
  2. Makes a significant contribution to the perceived customer benefits.
  3. Difficult for competitors to imitate.
• Focus: Strategic management should focus on nurturing core competencies rather than just individual products.