The concept Example of Core Competencies STATES these are activities, processes and abilities that give the entity a capability of meeting the Critical Success Factors (CSF’s) for products or services and achieving competitive advantage.
Table of Contents
What are Competences? (Types)
1. Threshold Competences
These are are activities, processes and abilities that provide an entity with the capability to provide a product or service with features that are sufficient to meet customer needs (the ability to provide ‘threshold’ product features).
- Where the entity has the same level of competence as its competitors; OR
- That are easy to imitate.
2. Core Competences
These are activities, processes and abilities that give the entity a capability of meeting the Critical Success Factors for products or services and achieving ‘Competitive Advantage’.
3. Sustainable Core Competences
These are ‘Core Competences’ that can be sustained over a fairly long period of time – (over a period of time that is long enough to achieve strategic objectives).
- Durability; It refers to the length of time that a ‘Core Competence’ will continue in existence, or the rate at which a competence depreciates or becomes obsolete.
- Difficulty to Imitate; A ‘Sustainable Core Competence’ is one that is difficult for competitors to imitate, or that it will take competitors a long time to imitate or copy.
Example of Core Competencies – 4 Key Elements
‘Sustainable Core Competences‘ come from unique resources and a unique ability to use resources. The ‘Core Competences’ that give firms a competitive advantage vary enormously.
|1. Providing a Good Service to Customers|
|Some ‘Entities’ have a particular competence in providing good service that other entities find difficult to imitate.|
|2. Embedded Operational Routines|
|Some ‘Entities’ use processes and procedures as part of their normal way of operating, as a result of which they are able to ‘Make things Happen’. This competence is sometimes described in general terms as ‘Operating Efficiency’.|
|3. Management Skills|
|The ‘Core Competence’ of an ‘Entity’ might come from the ability of its management team.|
|‘Knowledge’ can be a Key Resource, and ‘Core Competence’ is the ability to make use of the knowledge and ‘know how’ within the ‘Entity’, to create competitive advantage.|
The Bottom Line
The concept Example of Core Competencies STATE that these are activities, processes and abilities that give the entity a capability of meeting the Critical Success Factors for products or services and achieving ‘Competitive Advantage’.
Chartered Accountant (Institute of Chartered Accountants of Pakistan)
Bachelor of Accounting Honours (Asia e University, Malaysia)