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Marketing strategy and core competencies One of the very common analytical approaches in strategic planning is SWOT analysis.
These two letters, or parts of the SWOT analysis, are designed to work together. In other words, we identify the corporate strengths and then try to match them to opportunities in the marketplace.
Understanding core competencies Core competencies are special skills and capabilities of the firm that provides some competitive advantage in the marketplace.
You should note that core competencies are skill sets that reside in the people and processes within the organization. They are ways that the organization operates, rather than the physical resources that the firm.
Probably the best way to understand a core competency is to review the article on core competency examples. Apple has superior innovation expertise — they are very good at enhancing existing technology and improving its capability and making it easy and enjoyable to use.
They are also quite good at growing markets and attracting large numbers of consumers to new technology. This skill set means that they will have ongoing success in the marketplace because they are able to KEEP delivering exciting and interesting new products and generating large scale demand.
Compare this position to Nokia — that not that long ago was a leading mobile phone provider. They had the resource advantage of a larger market share, a larger selection of mobile phone products, and a strong established brand in the mobile phone market. But along comes Apple who leverages this skill set for innovation into the mobile phone market — the results have been spectacular, with Apple becoming a dominant player in the market and extremely profitable.
Much of their success has been due to its ability in this area. Difficult to duplicate Core competencies are attractive to firms because they allow the firm to have a relatively unique advantage in the marketplace — again think of the Apple example above — that skill set of innovation is very difficult or very expensive for competitors to duplicate, if not impossible?
Here is a link to a Harvard Business Review article that is worthwhile reading on this topic. You will note that it is suggested that there are three evaluation factors that firms should use to identify the strength of the core competencies in the business. The first point of ability to leverage has been demonstrated by Apple who has been able to take the innovation expertise into multiple technology markets — such as, mobile phones, tablets, watches, computers, and even retailing.As Nokia’s boss noted, Nokia’s core competence is in phone designs, but the trend in China, where manufacturers buy phone chipsets from vendors and make phones at unbelievable pace and price.
Jun 11, · Trunk and major limbs are core products, smaller branches are business units, leaves flowers and fruits are end products, the root system that provides the nourishment, sustenance and sustainability are the core competencies.
Nokia recently introduced its worldwide IoT network grid (WING) as a service to help businesses better track and manage their large-scale IoT deployments.
Core competencies are competencies that make you successful at doing your job. They are identified by observing specific behaviors, skills, and characteristics of people that are successful in their jobs.
Strategic alliances have characterized ZEISS throughout its history. Thanks to this interaction of the ZEISS core competencies with those of selected companies, both partners are able to tap into new markets – this is a model that offers distinct benefits for both .
As Nokia’s boss noted, Nokia’s core competence is in phone designs, but the trend in China, where manufacturers buy phone chipsets from vendors and make phones at unbelievable pace and price.