Core competency

Part of a series on
Strategy
Analysis methods Strategy • Strategic management Military strategy • Strategic studies Strategic planning • Strategic thinking Decision theory • Game theory
Major thinkers Michael Porter  • Rita Gunther McGrath Bruce Henderson  • Gary Hamel Candace A. Yano  • C. K. Prahalad Jim Collins  • Liddell Hart Carl von Clausewitz  • Sun Tzu Julian Corbett  • Alfred Thayer Mahan J.C. Wylie  • Adrian Slywotzky Sharon Oster  • Chris Zook Henry Mintzberg
Concepts Business model  • Competitive advantage Value chain  • Performance effects Core competency • Generic strategies Mission statement
Frameworks and tools SWOT • Five forces Balanced scorecard • Ansoff matrix OGSM • Managerial grid model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO
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A core competency is a concept in management theory introduced by C. K. Prahalad and Gary Hamel.^[1] It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.^[2]

Core competencies fulfill three criteria:^[1]

1. Provides potential access to a wide variety of markets.
2. Should make a significant contribution to the perceived customer benefits of the end product.
3. Difficult to imitate by competitors.

For example, a company's core competencies may include precision mechanics, fine optics, and micro-electronics. These help it build cameras, but may also be useful in making other products that require these competencies.^[1]