Core competency is a unique skill that creates distinct customer value. As an organization grows, develops and adjusts to the changing business environment, so do its core competencies. Hence, these competencies need to be flexible and develop with time.
The organization cannot grow if its core competencies are rigid and fixed. Core competencies enable an organization to distinguish its products from its rivals as well as to reduce its costs as compared to its competitors to attain a competitive advantage.
Core competencies are the collective learning of an organization which not only involves coordination with large management skills but also integrating multiple channels of technology.
When an organization identifies its core competencies, it becomes capable of creating more value. Individuals in the organization should recognize their competencies and work towards moulding and enhancing them.
It is essential for businesses to enhance and highlight their core competencies to deliver value to their customers. Core competencies should be developed in such a way that it is hard for competitors to imprint on.
One way to ensure development of such core competencies is by identifying key internal strengths and investing in the aspects most valued by their customers. Once individuals clearly understand their core competencies, they acquire the ability to design ways to utilize them within and outside the organization to achieve maximum success.
This in turn gives them and the organization a competitive edge.
Four such competencies that give an organization a competitive edge over others are:
Cutting edge innovations of an organization give it a competitive edge in the market. The customers are always looking for creative and innovative ways to upgrade their lives. Hence, businesses should always keep upgrading their products and keep innovating.
For example, Apple’s core competency has been its ability to roll out novel designs that enhance a user’s experience as compared to other businesses in the same arena. Small businesses become more successful than the bigger competitors when they are nimble and constantly innovative.
Quality ensures reliability and performance. Businesses that deploy new concepts such as time-focused manufacturing and total quality management to incorporate quality in their production fair well than their competitors. Consumers look for products in the market they can rely on and thus, providing quality assurance becomes an essential aspect. Businesses with a reputation for a quality are thus able to make higher profits as well as enjoy consumer loyalty.
Businesses that provide unprecedented customer service to the consumers enjoy a competitive advantage within the market. The ability to formulate and complete client engagements on time and within budget highlights the organization’s efficiency. Companies that do not invest in providing efficient customer service might risk losing its customers to the competitors.
It is essential for organizations to be flexible to stay competitive. Exploring market niches that the competitors are not pursuing, teaming up with other businesses to gain market shares can actively improve the flexibility of the company. However, bigger market players also need strategic flexibility to work in accordance with rapidly changing customer preferences and ever-changing business climate.