The paper “ Core Competencies as a Source of Competitive Advantage” is a pathetic example of an essay on management. Having a competitive advantage is very important for a business to emerge on top in the market. Competitive advantage helps the firm remain at par or ahead of its competitors in the market. There are various sources of competitive advantage for a business. These sources are either tangible or intangible. One of the intangible sources of competitive advantage is the core competences of a business. Core competencies are very important for the success of a business, especially in a changing environment.
The distinctiveness of the core competence enhances the competitive advantage of a business. Core competencies form the roots from where the different business units create new products. This means that the business can not be driven out of the market even when the business environment changes. The business is able to use its core competence to design new products for the market. It’ s also very important for the business to maintain its competitive advantage. There are various ways that firms use to enhance and maintain their competitive advantages even when they are temporal.
The different methods include maintaining the costs down, focusing on the given market or customers, differentiation, seeking relevant information, improving employee skills, using new approaches, and monitoring competitors. Core competences as a source of competitive advantageCore competencies refer to a set of production skills and techniques that are used to produce different products. Core competences confer a sustainable competitive advantage to a business by enabling to produces different goods and services for the market. Core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer.
Such competencies empower an organization to access a wide variety of markets (Hafeez, Zhang & Malak 2002, p. 28). The firm should estimate the future challenges and opportunities of the business in order to stay on top of the game in varying situations. This ensures that the core competencies give sustainable competitive advantages.
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