{"id":108115,"date":"2021-02-13T11:57:28","date_gmt":"2021-02-13T06:27:28","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=108115"},"modified":"2024-04-12T14:29:50","modified_gmt":"2024-04-12T08:59:50","slug":"core-competencies","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/core-competencies\/","title":{"rendered":"Core Competencies"},"content":{"rendered":"\n<p>Resources and capabilities serve as the foundation upon which companies formulate and implement value creating strategies so that the company can achieve strategic competitiveness and earn above average returns.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/www.vskills.in\/lms\/wp-content\/uploads\/2016\/06\/Image-10-7.jpg\" alt=\"Image 10\" class=\"wp-image-35338\"\/><\/figure><\/div>\n\n\n\n<p>However, not all of a company\u2019s resources and capabilities represent strategic assets, assets that have competitive value and the potential to serve as a source of competitive advantage. If the company has a deficiency in some of its resources, it may not be able to achieve strategic competitiveness. For example, insufficient financial resources may prevent the company from implementing the processes or integrating the activities required to add superior value by limiting the company\u2019s ability to hire workers with the necessary skills or to invest in the capital assets (facilities and equipment) that are needed.<\/p>\n\n\n\n<p>Thus, companies not only are challenged to scan the external environment to identify opportunities that can be exploited, but also to have an in-depth understanding of company resources and capabilities. This will enable the company not only to develop strategies that enable it to exploit external opportunities but also to avoid competing in areas where the company\u2019s resources and capabilities are inadequate. Some indicators of competitive strengths and weaknesses are shown below in Table below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><td><strong>Signs of strength and Weakness in Competitive Position<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Signs of Competitive &nbsp; Strength<\/td><td>Signs of Competitive &nbsp; Weakness<\/td><\/tr><tr><td>Important core &nbsp; competencies<\/td><td>Confronted with &nbsp; competitive disadvantages<\/td><\/tr><tr><td>Strong market share (or a &nbsp; leading market share)<\/td><td>Losing ground to rival &nbsp; companies<\/td><\/tr><tr><td>A pace-setting or &nbsp; distinctive strategy<\/td><td>Below-average growth in &nbsp; revenues<\/td><\/tr><tr><td>Growing customer base &nbsp; and customer loyalty<\/td><td>Short on financial &nbsp; resources<\/td><\/tr><tr><td>Above-average market &nbsp; visibility<\/td><td>A slipping reputation with &nbsp; customers<\/td><\/tr><tr><td>In a favorably situated &nbsp; strategic group<\/td><td>In a favorably situated &nbsp; strategic group<\/td><\/tr><tr><td>Concentrating on fastest &nbsp; growing market segments<\/td><td>In a strategic group &nbsp; destined to lose ground<\/td><\/tr><tr><td>Strongly differentiated &nbsp; products<\/td><td>Weak in areas where there &nbsp; is the most market potential<\/td><\/tr><tr><td>Cost advantages<\/td><td>A higher-cost producer<\/td><\/tr><tr><td>Above-average profit &nbsp; margins<\/td><td>Too small to be a major &nbsp; factor in the market place<\/td><\/tr><tr><td>Above-average &nbsp; technological and innovational capability<\/td><td>Not in good position to &nbsp; deal with emerging threats<\/td><\/tr><tr><td>A creative, &nbsp; entrepreneurially alert management<\/td><td>Weak product quality<\/td><\/tr><tr><td>In position to capitalize &nbsp; on opportunities<\/td><td>Lacking skills and &nbsp; capabilities in key areas<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>When the company\u2019s resources and capabilities result in a core competence, the company will be able to produce goods or services with features and characteristics that are valued by customers. This implies that companies can implement value creating strategies only when its capabilities and resources can be combined to form core competencies.<\/p>\n\n\n\n<p>The question is asked: \u201cHow many core competencies are required for a competitive advantage?\u201d McKinsey &amp; Company recommends that companies identify 3 or 4 competencies around which to frame their strategic actions. For example, McDonald\u2019s has exactly four competencies (in real estate, restaurant operations, marketing, and its global infrastructure).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Resources and capabilities serve as the foundation upon which companies formulate and implement value creating strategies so that the company can achieve strategic competitiveness and earn above average returns. However, not all of a company\u2019s resources and capabilities represent strategic assets, assets that have competitive value and the potential to serve as a source of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108115","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Core Competencies - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/core-competencies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Core Competencies - Tutorial\" \/>\n<meta property=\"og:description\" content=\"Resources and capabilities serve as the foundation upon which companies formulate and implement value creating strategies so that the company can achieve strategic competitiveness and earn above average returns. 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