Core competence management

The concept of core competence is frequently heard in the context of production. It is meant to describe a specific step in production in which a company has an outstanding market position. However, if core competence is understood as a company’s holistic ability to secure its USP, the managing of core competence becomes very important. Specifically in technology-intensive industries, the building and maintaining of core competence is decisive for the competitiveness and growth dynamics of an undertaking.

The maexpartners consulting approach

Value-add chains can also be broken down according to core competence. And, the more business and the global economy are organized as a division of labor, the more important value-add networks become. That’s why we look at individual companies and take an approach that includes core competence partnerships.

The Factors to Success

  • Status determination: the result is a detailed analysis of a company’s competence. It reveals what capabilities currently contribute decisively to the company’s success. A competitive comparison provides a picture of the specific competence of the most important competitors.
  • The development of new core competence: one of the prerequisites for developing core competence is clearly defined strategic targets. In the dynamic environment of technology-intense industries, the definition of future scenarios can be helpful. They make it possible to compare alternative positioning with optimum growth opportunities and to identify the necessary core competence.
  • The tapping of external core competence: value-add chains are more and more the result of good cooperation between value-adding partners. Consequently, the managing of core competence must also open up perspectives that reach beyond the company’s domain. The company must explore the opportunities presented by core competence partnering. .  On the one hand, this increases the complexity of the cooperation but on the other hand, it improves the technological competence as well as the economic potency of value-adding networks.