1.IntroductionThe emergence of the knowledge economy calls for a new way of competition- core competence that is unique in the development of firms and focuses on the identifying, acquisition and development of core competence. An empirical example of ToshibaÃÂs Customer Service illustrates the relation between customer and core competition in the marketing framework of firm and reveals how core competence is finally configurated in the business.
2.Theory1)ConceptionAccording to the illustration by Hamel, core competence of the organization can be defined as: ÃÂa technical or management subsystem which integrates diverse technologies, processes, resources and know-how to deliver products and services which confer sustainable and unique competitive advantage and added value to an organizationÃÂ.
Core competencies are skills and areas of knowledge that are shared across business units and result from the integration and harmonization of basic unit competencies. A core competency is a collection of competencies that are widespread in the corporation.
Core competencies require collective organizational learning, involvements and a commitment to cross integration of all basic units. Core competencies add the greatest value since they exploit resources and capabilities at the broadest level, across the corporation as a whole.
A successful competitive strategy is built on the firmÃÂs core competencies and competitive advantages. A competitive advantage is any aspect of the companyÃÂs resources, capabilities and competencies that provides it with an attractive relative competitive position. While the attractive relative position could be caused by something that the company does better than its competitors (competencies or capabilities), it is not always necessarily so.
A core competence is a unique combination of technologies, knowledge and skills that are possessed by one company in a market. Its intangible assets render it invisible to external observers and difficult to analyze. This benefits the possessing firm as the competence cannot be copied...