Core Competencies Analysis (PowerPoint PPT)

Core Competencies Analysis is a powerful 5-phase business framework used to determine company-specific skills that enable differentiated value delivery. In other words, using Core Competencies Analysis, we can determine true competitive advantages of our company.

This offers invaluable insight into the company's business strategy, including answers to the following questions:

•  What products or services should we invest in (to best leverage our core competencies)?
•  What are our critical deficiencies that we need to improve upon?
•  What products or services should we divest?

This document dives deep into the intricacies of identifying and leveraging core competencies to drive strategic business decisions. It begins by defining key terms such as "Core Product" and "Core Capability," ensuring a solid foundation for understanding the framework. The step-by-step approach guides you through identifying end products, grouping them into businesses, and pinpointing core products, ultimately leading to the identification of core competencies. This structured methodology ensures that no stone is left unturned in uncovering the true strengths of your organization.

The analysis emphasizes the importance of verifying core capabilities through rigorous testing. It outlines three critical tests: market access potential, contribution to customer benefits, and difficulty of duplication by competitors. These tests ensure that the identified core capabilities are not only valuable, but also sustainable in the long run. The document also highlights the necessity of involving key stakeholders and subject matter experts in the verification process, ensuring that the insights gained are both accurate and actionable.

Phase 3 of the analysis focuses on identifying core products by finding common links among end products or services. This phase provides practical examples, such as microprocessor chips and creative design, to illustrate the process. By grouping end products directly, businesses can streamline their operations and focus on their most valuable offerings. This phase is crucial for understanding the tangible outputs that stem from core competencies, providing a clear roadmap for strategic investment.

The final phase of the analysis interprets the implications of the identified core competencies. This phase is designed to translate the insights gained into actionable business strategies. It helps in determining which products or services to invest in, which to improve, and which to divest. By understanding the broader implications of core competencies, businesses can make informed decisions that align with their long-term strategic goals. This comprehensive approach ensures that the core competencies analysis is not just an academic exercise, but a practical tool for driving business success.