CoreCompetenceStrategy(PPT11)英文.pptVIP

Core Competence Strategy Key summary reading: Prahald, C.K. Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68 (3), 79-91. Key Premises Build worldwide leadership in a class of product functionality (e.g, microprocessor controls) that can apply to multiple products Build a maximum of five or six of these “core competencies” Protect core competencies when making key strategic decisions: resource allocation alliances outsourcing Core competencies are collective learning in the organization  1. How to coordinate diverse production skills and multiple streams of technology e.g., Cascio: harmonizing know-how in miniaturization, microprocessor design, material science, and ultrathin precision casing to produce an array of products such as miniature card calculators, pocket TVs and digital watches 2. How to organize work and deliver value e.g. 3M’s competencies in substrates, coatings, and adhesives has allowed them to bring forth such diverse products as Post-It notes, magnetic tape, diskettes, photographic film, and adhesives 3. How to develop and sustain communication, involvement, and deep commitment to working across organizational boundaries involves many levels of people and all functions, such as in World-class research Core competencies... develop with time and experience are tacit and hard to imitate or transfer involve people-embodied skills Identifying core competencies 1. CCs provide potential access to a wide variety of markets e.g., Cascio’s display systems: calculators, TV sets, computers LCDs, auto dashboards 2. CCs make a significant contribution to perceived customer benefits of end product e.g., Honda’s engine expertise had benefits in autos, motorcycles, lawn mowers and generators 3. CCs are difficult for competitors to imitate because they involve comprehensive patterns of internal coordination and learning e.g., Philips’ competence in optical media that fed into a wide variety of other products