Question

Define the tern core competency and explain its role in manufacturing strategy.

Answer 1

Core Competency refers to the unique skill or technology that creates distinctive customer value. The theory states that the firms must play to their strengths or those areas of functions in which they have comparative advantage.

In case of manufacturing strategy, core competencies play an important role where each person or firm manufactures the good in which it has core competency which leads to increase in the overall amount of the goods manufactured in the country or world. The main advantage of this theory is in the manufacturing sector.