Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
Corporate Strategy Diversification - Prof. Dr. Bernd Venohr
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Core Competencies:<br />
What a firm does that is strategically valuable<br />
� What a firm does that is strategically valuable<br />
– “…the essence of what makes an organization unique in its ability to provide value<br />
to customers.”<br />
� Criteria for resource to be a core competency and generate sustained<br />
competitive advantage<br />
– Valuable: Capabilities that either help a firm to exploit opportunities in the<br />
environment to create value or to neutralize threats in the environment<br />
– Rare: Capabilities possessed by few, if any, current or potential competitors<br />
– Costly to imitate: Capabilities that other firms cannot develop easily, usually due<br />
to unique historical conditions, causal ambiguity or social complexity<br />
– Non substitutable: Capabilities that do not have strategic equivalents, such as<br />
firm-specific knowledge or trust-based relationships<br />
Source: Robert M. Grant, Contemporary <strong>Strategy</strong> Analysis: Concepts, Techniques, Applications<br />
(5th edition, Blackwell, 2004)<br />
© 2006 <strong>Dr</strong>. <strong>Bernd</strong> <strong>Venohr</strong><br />
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