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The Core Competence of the Corporation By c.k.Prahalad and Gary Hamel How to judge top executives During the 1980s 1.restructure their corporations(重组公司) 2.declutter their corporations (拨乱反正) 3.delayer their corporations(精简机构) In the 1990s 1.Identify the core competencies(识别核心竞争力) 2.Cultivate the core competencies (培育核心竞争力) 3.Exploit the core competencies(利用核心竞争力) Something Changed In 1980,GTE’s sales were $9.98 billion, and net cash flow was $1.73 billion. In 1988,GET’s sales were $16.46 billion. In 1980,NEC’s sales were $3.8 billion. In 1988,NEC’s sales were$21.89 billion. Why ? Largely because NEC conceived of itself in terms of “core competencies” and GTE did not. Rethinking the corporation The diversified corporation is a very difficult job. The critical task for management is to create an organization capable of infusing products with irresistible functionality or, better yet, creating products that customers need but have not yet even imagined . It requires radical change in the management of major companies. The changing basis for global leadership NEC’s top management reckoned, would hinge on acquiring core competencies. Decentralization made it difficult for GTE to focus on core competencies. The Roots of Competitive Advantage 余水生 In the short run, a companys competitiveness derives from the price/performance attributes of current products. But the survivors of the first wave of global competition, Western and Japanese alike, are all converging on similar and formidable standards for product cost and quality minimum hurdles for continued competition, but less and less important as sources of differential advantage. In the long run, competitiveness derives from an ability to build, at lower cost and more speedily than competitors, the core competencies that spawn unanticipated products. The real sources of advantage are to be found in managements ability to consolidate corporatewide technologies and production skills into competencies that e
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