Core Competence

What is it?

A company’s Core Competence generates its Competitive Advantage. It is what the company does that is better than all competitors  the process in the value chain that the company is best at. It provides the strategic platform for all the companies business, and is the source of Economic Profit.

When is it useful?

Called “Core” by Geoffrey Moore, he explains why this needs to be managed very differently from the rest of the companies activities.

An Example?

Virgin – brand stretch – leveraging the irreverent “Challenger” brand into new areas.

3M has a core competence in adhesive technology

AIG – managing an agency salesforce

SWA – point-to-point shorthaul airline operations

How do you do the analysis?

I want to know more

Gary Hamel

Geoffrey Moore – Dealing with Darwin

How can you adapt this concept?