Core Competencies

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:

  1. It is not easy for competitors to imitate.
  2. It can be reused widely for many products and markets.
  3. It must contribute to the end consumer’s experienced benefits. The importance of the product/service to its customers.