A core competency is a capability that provides a firm with a competitive advantage. These competencies develop over time and represent the culmination of a firm’s greatest skills. In order to be considered a core competency, three conditions should be met. First, the competency should open up an array of markets. Next, it should help differentiate the firm’s most important products. Finally, a core competency should be difficult to for competitors to imitate
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A company’s most important strategic resources are those assets that give the company a unique, competitive advantage over its rivals. Additionally, a company must be able to exploit a strategic resource for it to be valuable.
Posted in business on Sep 10th, 2015
Although it is useful to examine an industry as a whole, when it comes to strategic decision making, it is far more useful to divide the industry into more manageable segments. Industry segmentation allows the development of segment specific strategies that can more accurately target the chosen market.
Despite the changes wrought by the recent recession, the forces acting on the automotive industry have not changed much over the years. Michael Porter’s five forces model describes an industry’s profit potential in terms of five forces: threat of new entrants, bargaining power of customers, bargaining power of suppliers, threat of substitutes, and rivalry among competitors.