Core Competencies
In their 1990 article entitled, “The Core Competence of the Corporation,” C.K. Prahalad and Gary Hamel coined the term core competencies. The theory behind their ideas regarding core competencies was the belief that core competencies are the collective learning and coordination skills needed behind a firm’s product lines. Prahalad and Hamel further believed that core competencies are a source of competitive advantage that enable a firm to introduce an array of new products and services. In their article, Prahalad and Hamel showed how core competencies naturally lead to the development of a company’s core products, which in turn allows various segments of a company to develop applications for a core product’s technology, resulting in a larger number of end users.
This intermixing of market opportunities with core competencies forms the competency model for launching new business. The development of core competencies in different ways and in new market opportunities allow a corporation to launch a new array of business applications, which in turn promotes company growth.
Workforce3 One (pronounced: “workforce-cubed-one”), funded by the U.S. Department of Labor, offers more information on core competencies. Workforce3 One provides resources regarding knowledge, skills, and abilities for high growth industry careers, as well as assessments for determining suitability of potential employees for different high growth industry careers. Click here now to register for Workforce3 One’s website and to access webinars, to download tools and products from the site, search the document library and archive, submit documents and links to site for posting consideration, and more!
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