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The Core Competence Model is a corporate strategy model that starts the strategy process by thinking about the core strengths of an organization.

Whereas the traditional outside-in approach (e.g. Porter’s Five Forces, BCG Matrix) places the market, competition, and customer at the starting point of the strategy process, the Core Competence Model does the opposite. It states that in the long run, competitiveness derives from an ability to build a Core Competence at lower cost and more quickly than competitors.

The real sources of Competitive Advantage are to be found in management's ability to consolidate corporate-wide technologies and production skills into competencies, through which individual business units can adapt quickly to changing circumstances. A Core Competence can be any combination of specific, inherent, integrated, and applied knowledge, skills, and attitudes. Our Core Competence may result in the creation of unanticipated products and services.

Additional topics covered include Core Rigidity, Dimensions to Core Competence, Core Competence Clarification, Core Competence Mindset.

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Tag(s): Core Competences Competitive Advantage

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