COMPETENCIESCORE

Founder of the concept of CORE COMPETENCE

C.K. PRAHLAD

GARY P. HAMEL

• CORE COMPETENCIES ARE THE SKILLS, CHARACTERISTICS, AND ASSETS THAT SET YOUR COMPANY APART FROM COMPETITORS. THEY ARE THE FUEL FOR INNOVATION AN THE ROOTS OF COMPETITIVE ADVANTAGE . For example, CORE

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At Sony – benefit is POCKETABILITY core competence is MINIATURIZATIONAt Federal Express – benefit is ON TIME DELIVERY core competence is LOGISTICS MANAGEMENTAt Motorola – benefit is UNTETHERED COMMUNICATION core competence is WIRELESS COMMUNICATION.

Why Competencies?• Even good marketing wont make a “me too”

firm competitive in the long run.• Competencies are enhanced with time.• Make or buy decisions are

simplified.• Non-competencies can be

supplemented with strategic alliances and licensing agreements.

Competencies to Core Products

• Core products are the tangible evidence of our core competencies. They are key contributors to the customer benefits received from the end product.– Honda: Small gas engines–Canon: Desktop laser printer engines

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• From these core products come the new strategic business units. These SBU’s can be in completely separate markets.

• These businesses each have end products that contain the core products.

• In each SBU, outsourcing may be considered for everything except the core products and competencies.

Exercise: Identifying Your Core Competencies

•Compile a list of capabilities. •What do you excel at ? •Think of your most skilled employees.•What products have been your past winners?

Competitive Advantage•Short-term market share can be won by anyone with a good idea.•Race to get products on the shelf.

• Long-term success involves competency structured organizations, innovation, and market consistency.• Same core products, integrated into new end products, creating new markets.

RISKS OF IGNORING CORE COMPETENCIES

• The lack of core competence perspective can desensitize a company to its growing dependence on outside suppliers of core products.

• A company focused only on end products may fail to invest adequately in new core competencies that can propel growth in the future.

• Opportunities for growth will be needlessly turned down. • As a company divisionalies and fractures into ever smaller business

units, competencies may become fragmented and weakened.

RISKS OF IGNORING CORE COMPETENCIES

· A company that fails to understand the core competence basis for competition in its industry may be surprised by new entrants who rely on competencies developed in other end markets.

· Companies insensitive to the issue of core competence may unwittingly relinquish valuable skills when they divest an under-performing business.

A young graduate from a small town in Rajasthan, Churu declined a bank job because he wanted to do something on his own, something big. Today, NKC’s Jaipur Rugs is India’s largest manufacturer of hand-knotted rugs, with an annual turnover of above ₹ 122 crore annual turnover.

WEAVER

 Once a person becomes selfless in his true sense, then abilities like empathy, love, integrity and simplicity bloom. These are abilities that have led to the inception and evolution of Jaipur Rugs and these abilities, put together, always lead to the creation of something that’s flawless and constant.

Thinker

Live a life worthy of Dignity and respect

NKC’s Transformational Leadership approach has created valuable and positive change in the employees of Jaipur Rugs as well as artisans at the grassroots, by stimulating and inspiring them to both achieve extraordinary outcomes and, in the process, develop their own leadership capacity.

Doer

OneRugOnestory

THANK YOU

NAME- YASH BHATITOPIC- CORE COMPETENCE

SUBMITTED TO- S.P.S.BHADU (HEAD OF DMS JNVU)DATE- 27/3/2015