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Core competencies are the most significant value creating skills within your
corporation and key areas of expertise which are distinctive to your company and
critical to the company's long term growth. Your company's core competencies
are the things that you can do better than your competitors in the critical, central
areas of your company where the most value is added to your products. These
areas of expertise may be in any area from product development to employee
dedication.
"A core competency is an area of specialized expertise that is the result of
harmonizing complex streams of technology and work activity." ~ C.K.Prahalad
A competence which is central to your business's operations but which is not
exceptional in some way should not be considered as a core competence, as it
will not generate a differentiated advantage over rival businesses. It follows
from the concept of Core Competencies that resources that are standardized or
easily available will not enable a business to achieve a competitive
advantage over rivals.4