Core competency is a term that refers to the capabilities, knowledge, skills and resources that constitute the defining strength of an organization or an individual¹². Core competency is what sets a business or a person apart from their competitors and gives them a competitive advantage in their industry or sector²³.

Core competency is not easily replicated by other organizations or individuals, whether they are existing rivals or new entrants into the market². Core competency is based on the idea of creating a unique value proposition for customers and stakeholders, as well as seizing new opportunities and growing²

Core competency was first proposed by C.K. Prahalad and Gary Hamel in 1990 in their article “The Core Competence of the Corporation”² They suggested that core competency is the most powerful way to prevail in global commerce and adapt quickly to changing opportunities. They also suggested that business managers and leaders should be evaluated based on their ability to identify, cultivate and exploit the core competencies that make growth possible²

Core competency can be organization-wide or individual-specific. An organization can have one or more core competencies that span across different domains, such as product quality, customer service, innovation, design, sales and marketing, etc. An individual can have one or more core competencies that reflect their personal attributes, such as accountability, ambition, communication, teamwork, etc¹³

Core competency is important for creating accessible and user-friendly experiences that can reach a wide audience and cater to diverse needs¹ Core competency is also important for creating a sustained competitive advantage that can help a business or an individual achieve their goals and objectives¹²³

There are many different types of core competencies, but some common examples include:

• Technology: A company may have a core competency in technology, such as the ability to develop new products or services more quickly than its competitors.
• Innovation: A company may have a core competency in innovation, such as the ability to come up with new ideas or solutions to problems.
• Customer service: A company may have a core competency in customer service, such as the ability to provide excellent customer support or to build strong relationships with customers.
• Branding: A company may have a core competency in branding, such as the ability to create a strong brand identity that attracts customers and makes them loyal to the company.

Core competencies are important for companies because they can help them to:

• Differentiate themselves from their competitors: Core competencies can help companies to stand out from their competitors and to offer something that no one else does.
• Attract and retain customers: Core competencies can help companies to attract and retain customers by providing them with something that they value.
• Increase sales and profits: Core competencies can help companies to increase sales and profits by giving them an advantage over their competitors.

Companies can identify their core competencies by conducting a SWOT analysis, which is a tool that helps companies to identify their strengths, weaknesses, opportunities, and threats. Once a company has identified its core competencies, it can use them to develop a competitive strategy that will help it to achieve its goals.

It is important to note that core competencies are not static. They can change over time as the company’s business environment changes. Companies need to continually monitor their core competencies and make changes as needed.

By understanding their core competencies, companies can gain a competitive advantage and achieve their goals.