Core Competencies

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Core Competencies

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The term "core competency" first became popular through an article on the subject which appeared in Harvard Business Review in June 1990, entitled The Core Competency of the Corporation, by Pralahad and Hamel. It defined core competencies as "the collective learnings in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies." The thesis being that core competencies (i.e., harmonizing streams of technology) can become a way of competing via developing new products built around/off of a firm's proven competencies. Examples are the logistics system of Federal Express or Honda's engine technology or dealer network;...

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