How to look at core competencies and core competitiveness

It's too complicated upstairs. Here's a quick distinction:

Because organizations are all "profit-oriented", the core competency is the profitability or skill of the enterprise, and this ability is for itself. The core competitiveness is the valuable ability to distinguish it from competitors, and this ability is the ability to distinguish it from opponents, relatively speaking.

Core competencies include core competencies, and core competencies are the ability to "fight" in capability.

The generation of enterprise core competence represents a view of enterprise development: the development of an enterprise is determined by its own unique resources, and enterprises need to build their own capability system around these resources to achieve their competitive advantage.

A core competency is a set of skills and knowledge that are ingrained in a group or team and complement each other, with the help of which they can be implemented at a world-class level – up to a number of core combs. The core competitiveness of an enterprise is the core competence of an enterprise formed for a long time, contained in the essence of the enterprise, unique to the enterprise, supporting the past, present and future competitive advantages of the enterprise, and enabling the enterprise to obtain the initiative for a long time in the competitive environment.

From the concept can be seen, from the perspective of relationship, first of all, the core competitiveness of the enterprise is included in the core competence of the enterprise, followed by a relationship between the end and the means, the enterprise only cultivates, accumulates, and forms the core competence of the enterprise, in order to obtain the core competitiveness of the enterprise in the competition, the former is the means, and the latter is the goal.

Core competitiveness refers to the resources that can bring a comparative competitive advantage to the enterprise, as well as the allocation and integration of resources. With the change of enterprise resources and the improvement of allocation and integration efficiency, the core competitiveness of enterprises will also change. With the power generated by core competitiveness, an enterprise may stand out in the fierce market competition and enhance the value of products and services in a certain period of time.

Core competitiveness is the most core and key factor in competitiveness, and competitiveness is composed of resources and capabilities. Therefore, for the study of the core competitiveness of enterprises, more and more attention is paid to the analysis of the company's resources and capabilities. The identification of the core competitiveness of an enterprise can first start from the resources and capabilities of the enterprise, discover the competitiveness of the enterprise, and then determine which competitiveness can constitute the core competitiveness.

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Analysis: In 1990, the famous American management scholars Prahad and Hamel put forward the concept of core competitiveness, they believe that with the development and change of the world, the intensification of competition, the shortening of the product life cycle and the strengthening of global economic integration, the success of enterprises is no longer due to the short-term or accidental product development or the market strategy of inspiration, but the external performance of the core competitiveness of enterprises. By definition, a core competency is a unique skill or technology that enables a company to bring special benefits to its customers.

First of all, this ability can well realize the value valued by customers, such as: can significantly reduce costs, improve product quality, improve service efficiency, increase customer utility, so as to bring competitive advantages to enterprises. Sony's core competence is "miniaturization", and its core benefit to customers is to be carried; FedEx's core competency is a very high level of logistics management, and its core benefit to customers is immediate delivery.

Secondly, the core competitiveness must also be unique to the enterprise, and it is difficult for competitors to imitate, that is to say, it is not like materials, machinery and equipment can be purchased in the Weijialing market, but difficult to transfer or copy. This ability to be imitated can lead to above-average profits for a business.

Finally, the core competitiveness is also malleable, which can be applied to a number of different tasks at the same time, so that the enterprise can meet the needs of customers in a large range. For example, Canon has successfully entered more than 20 product fields such as copiers, laser printers, cameras, scanners and fax machines by using its core competitiveness in optical lens imaging technology and microprocessing technology. Honda's core expertise is engine design and manufacturing, which underpins the manufacture of cars, motorcycles, lawn mowers and formula cars.

The core competitiveness can be manifested not only in technology, but also in production and operation, marketing and finance. For example, Apple's product design and innovation capabilities, which pioneered the use of a mouse to operate a computer, and its Mackinto's design, which can be seen and felt, has greatly promoted the development of the personal and home computer market; Procter & Gamble, Pepsi excellent brand management and capabilities; Toyota's lean production capacity, etc. It is because of this unique ability that the company has been successful.

**The reason for the company's continued success is that it has been at the academic forefront of management and strategy in the West. Because of this, the West has produced some well-known enterprises, well-known scientists and Nobel laureates. In recent years, China's business circles have also launched an upsurge of study on this issue, and great progress has been made in both theory and practice.

Core competitiveness is the ability of an enterprise (talent, country or individual participating in competition) to gain a competitive advantage in the long term. It is a technology or capability that is unique to the enterprise, can stand the test of time, is malleable, and is difficult for competitors to imitate.

Core competitiveness, also known as "core (competitive) ability" and "core competitive advantage", refers to the collection of the ability of an organization to cope with change and fierce external competition, and to win over competitors.

The core competitiveness is the most basic competitiveness of the enterprise that can enable the whole enterprise to maintain a long-term stable competitive advantage and obtain stable excess profits, and is the organic integration of technical assets and operation mechanism of the enterprise's own organizational ability, and is the result of the implementation of the internal management strategy and external transaction strategy of the enterprise. The core competitiveness of a modern enterprise is a combination of key resources or key capabilities of an enterprise with knowledge and innovation as the basic core, and it is a dynamic balance system that can enable enterprises, industries and countries to maintain actual or potential competitive advantages in a certain period of time.

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Analysis: In the May-June 1990 issue of HBR magazine, Prahalad and Hamel published an article entitled "The Core Competitiveness and Competitiveness of Enterprises" for the first time"Core competitiveness"(core competence). They believe that the core competency is the ,...... of knowledge in the enterprise, especially on how to coordinate different production skills and integrate multiple technologiesIt's communication, inclusion, and a high commitment to working across organizational boundaries.

Since then, the concept has been expanded, understood and defined in many ways. Mever and Utterback believe that the core competitiveness of an enterprise refers to the research and development capabilities, manufacturing capabilities and marketing capabilities of an enterprise, and the ability to bring products to the market on the basis of product family regret and innovation. Lenard-Barton, on the other hand, believes that the core competitiveness of an enterprise is the knowledge system that makes the enterprise unique and brings competitive advantages to the enterprise.

Mr. O'Gordon, Chief Representative of McKinsey Company China, said:"The so-called core competitiveness is the idea that even if a company does not have an overall competitive advantage, it can become the best successful company through a few key technologies or a few areas of knowledge.

Different views on core competitiveness have also appeared in many domestic publications, and in general,"The shape is different but the quality is the same"It can be boiled down to: the core competitiveness is the most basic competitiveness of the enterprise that can enable the whole enterprise to maintain a long-term stable competitive advantage, the competitiveness of blind excess profits before the stable call, the self-organization ability of the enterprise to organically integrate the skill assets and operation mechanism, and the result of the implementation of the internal management strategy and external transaction strategy of the enterprise.