Core Competency

The video explains the concept of core competency, a key skill or ability that enables a firm to deliver value to its customers. Developed by Praline and Hamill and published in the Harvard Business Review, core competency is crucial in strategy development. It involves integrating available resources into the firm's value chain. As resources and skills evolve, so must the firm's core competency to maintain its effectiveness.

Who developed the concept of core competency?

• Smith and Johnson

• Praline and Hamill

• Davis and Clark

• Brown and Taylor

What is the primary focus of core competency in a firm?

• Financial management

• Employee satisfaction

• Resource integration into the value chain

• Marketing strategies

How can a firm develop a core competency?

• By expanding into new markets

• By increasing product prices

• By integrating resources into the value chain

• By hiring more employees

What factors can lead to changes in a firm's core competency?

• Changes in market trends

• Changes in knowledge, skills, and resources

• Changes in customer preferences

• Changes in government policies

Why must a company evolve with its core competency?

• To reduce operational costs

• To maintain its competitive advantage

• To increase employee retention

• To improve customer service