Question

What are core competencies? Why is it important to understand them?

What are core competencies? Why is it important to understand them?

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Answer #1

What are core competencies?

  • Core competencies are the main strengths or strategic advantages of a business
  • It is a unique ability that a company develops that cannot be easily imitated
  • core competencies provides an added competitive advantage over other companies in the same field
  • Core competencies of business distinguishes it from other businesses

Why is it important to understand them?

  • It is very important for a company to understand its core competencies because,
  • So that company could work on those core competencies to gain a competitive advantage
  • core competencies could add a differentiation to the products
  • core competencies could help in lowering the operational costs because company is good at doing it
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