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Monday, February 18, 2013

Distinguishing Core Competence

Distinguishing core competences from general competences:

General competences ar attributes such as skills, knowledge and technology that be common among competitors e.g. all pharmaceutic companies possess similar competences (basic abilities) in research and development. They do not produce superior doing but are crucial for survival.
General competences are very similar to key factors for success as they are shared by all organisations in a particular(prenominal) industry

Core competences are distinguished from general competences in several(prenominal) ways:

They are ground upon one or more than of the following:
they are only possessed by those companies whose performance is superior to the industry average
they are unique to the company
they are more complex
they are difficult to copy
they relate to fulfilling customer needs
they add greater value than general competences
they are often based on distinct relationships with customers, distributors and suppliers
they are based on superior organisational skills and knowledge

E.g.

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In the ride industry, all manufacturers have the competence to build motor vehicles but BMW has core competences in design, engine technology and marketing which is the basis of its reputation for high-quality, high performance cars.

These core competences put up the company to charge a premium price and are the basis of the organisations competitive advantage

Marks & Spencers competitive advantage is based upon its reputation for quality that arises from special relationships with suppliers that are very severe but mutually profitable. Its relationship with customers is based upon reputation for ingenuous service, refunds and exchanges. These distinct relationships are M&Ss core competences.

The end ensue is superior performance from the unique and distinctive way that M&S develops and deploys its resources and competences.If you want to get a full essay, station it on our website: Ordercustompaper.com



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