Prahalad and Gary Hamel influenced a generation of CEOs with their seminal work on core competencies outlined in a May 1990 article in Harvard Business Review, “The Core Competency of the Corporation.” A core competency is a specific factor that a business sees as being central to the way the company or its employees work. It fulfills three key criteria:
- It is not easy for competitors to imitate.
- It can be reused widely for many products and markets.
- It must contribute to the end consumer’s experienced benefits. The importance of the product/service to its customers.