A core competence of a firm is a [[Competence]] which is valuable across different products and markets, unique and hard to imitate:
* Valuable
** Customers have to be willing to pay for the value a core competence represents (lower costs or customer benefit)
* Unique
** If a competence is not unique competition will drive down profits.
* Hard to imitate
** A competence uniqueness is sustainable only if other firms have difficulties to replicate the competence:
*** Require tightly interlinked function within a firm
*** Causal ambiguity increases barriers to imitation. This is if the roots of the competence are hard to understand
* Valuable across different products or markets

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Part of [[M8-S2 - Reading - Strategies for E-Business - Chapter 4 - Internal Analysis]]

See also:
[[M6-S3 - Reading - Prahalad, C.K. The core competence of the corporation]]
[[M6-S4 - Session notes]]
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marketing_public
created
Thu, 23 Sep 2010 18:21:19 GMT
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dirkjan
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Thu, 23 Sep 2010 18:21:19 GMT
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dirkjan
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Entrepreneurial
M6
Marketing
Term
creator
dirkjan