The Core Competence of the Corporation
Name of the selected article: The Core Competence of the Corporation
A brief summary of the article
As an implication by the heading, The Core Competence of the Corporation by a famous professor of corporate strategy Coimbatore Krishnarao Prahalad and a management expert Gary Hamel which the thesis is deconstructed the actual theory of core competence in a corporation. The premise of this article is that core competency is the main source of competitive advantage within a company. Authors mention that competitive advantage can defend company against competitive forces as well as gain a large number of customers to support its end products, as a leader player in the industry. They also figure that core competencies create an entrance to large variety of global market and make satisfaction to their end products’ users. The article deals with the importance of the core competencies and challenges the corporation to survive in absence of core competencies.
Explanation of why this article is important or unimportant
Undoubtedly, core competence plays a major role in each corporation. The authors mention that core competence is a collective studying and able to coordinate skills and techniques in an organization. As we can associate a manufacturing process of a computer, it is required workers to have a range of skills and knowledges as well as a management requirement skill of integrating capacities within the company in order to produce the end product. Moreover, a firm must expect itself is a portfolio of competencies rather than a portfolio of strategic business units (Prahalad & Hamel, 1990).
The authors consider that the existing theory is focused on the perspective of top executives. Creating new organizational capable is the crucial work of manager as it is able to provide products which customers need but they do not even envision.
After reading the journal, company can clear understand how to establish, maintain and evaluate core competences. This is an excellent material for students who are expected to employment in management field.
A critical assessment of this book
The Core Competence of the Corporation is one of the rare articles that its content is compelling. There are a number of scholars’ quotes the article as evidence for thesis supporting although this journal was written more than 25 year back.