The Core Competence model is the brainchild of Gary Hamel and C.K. Prahalad and it starts the strategy process by considering the core strengths of the organization.
What is Core Competence?
Definition – A harmonized combination of multiple resources and skills that distinguish a firm in the marketplace, any combination of specific, inherent, integrated or applied knowledge, skills or attitudes, meeting three criteria:
Provides potential access to a wide variety of markets
Should make a significant contribution to the perceived customer benefits of the end product.
Difficult to imitate by competitors.
The Inside-Out Corporate Strategy
Typical approaches place the market, the competition and the customer at the starting point of the strategy process, such as the Five Forces Model of Michael Porter. The Core Competence model starts with the idea that competitiveness originates from the ability to build a Core Competence, with lower overhead and more swiftly than the competition. It is an Inside-Out strategy. Real sources of advantage are to be found in the firm’s ability to consolidate corporate wide technologies and production skills into competencies.