Core Competency

Core Competency
A narrowly defined field or task at which a company excels. A firm's core competencies are difficult for its competitors to mimic, allowing the company to differentiate itself. Most core competencies will be applicable to a wide range of business activities, transcending product and market borders.

A core competency for a firm is whatever it does best. For example, Wal-Mart focuses on lowering its operating costs. The cost advantage that Wal-Mart has created for itself has allowed the retailer to price goods lower than most competitors. The core competency in this case is derived from the company's ability to generate large sales volume, allowing the company to remain profitable with low profit margin.


Investment dictionary. . 2012.

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  • Core competency — A core competency is a concept in management theory originally advocated by CK Prahalad, and Gary Hamel, two business book writers. In their view a core competency is a specific factor that a business sees as being central to the way it, or its… …   Wikipedia

  • Core competency — Primary area of competence. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. The New York Times Financial Glossary * * * core competency ˌcore ˈcompetency noun [countable, uncountable] another… …   Financial and business terms

  • core competency — noun An important special capability or expertise; especially that of a business affording it sustainable competitive advantage. The publishers core competency was paperbacks, but they decided to branch out into online publishing …   Wiktionary

  • core competency — See core skill …   Big dictionary of business and management

  • core competency — …   Useful english dictionary

  • CORE COMPETENCY - основная компетенция — основные области специализации; строго определенные области деятельности, в которых компания превосходит остальных …   Словарь электронного бизнеса

  • core skill — core competency Any distinctive capability that endows a particular business with a competitive advantage over its rivals. The degree to which the business can exploit this unique competence varies according to the extent to which it can be… …   Big dictionary of business and management

  • Core Competencies — The main strengths or strategic advantages of a business. Core competencies are the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Theoretically, a core competency should allow …   Investment dictionary

  • Core concern — In computer science, a core concern is one of the main concerns a program is written for. The main coding of the application is to satisfy the core concerns, such as doing the tasks as visualized. Other coding which is to document changes,… …   Wikipedia

  • core competence — Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. Bloomberg Financial Dictionary * * * core competence core competence ➔ competence * * * core competence UK US noun [C… …   Financial and business terms

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