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Core Competencies

Reviewed by Anjaneyulu | Updated on Jun 10, 2021



Core competency is the defining characteristic of an enterprise, providing the base on which the company can expand, taking advantage of new opportunities and delivering value to clients. Many organisations, whether existing rivals or new entrants into their market, do not easily duplicate the core competency of a company.

A business may hold more than one core competency. Key competencies also referred to as key competence or defining skills, help establish a sustainable competitive edge for organisations.

Core Competencies & Product Developments

Core competencies are connected via core products to a company's product portfolio. Prahalad and Hamel (1990) identified key competencies as the engines for core products and services growth. Competencies are the roots the company grows from, such as a tree whose fruit is end goods.

Core products lead to a wide variety of end products becoming successful. Approaches for identifying product portfolios with respect to core competencies and vice versa have been developed in recent years. Danilovic & Leisner (2007) has suggested one method for defining core competencies with respect to a product portfolio.

They use concept structure matrices to map the competencies in the product portfolio to different products. Clusters of skills can be aggregated to core competencies using their approach. Bonjour & Micaelli (2010) implemented a similar method for evaluating the degree to which a firm has achieved its core competency growth.

More recently, Hein et al. relate core competencies to the definition of capabilities by Christensen, which is characterised as tools, processes and priorities. Also, they present a framework for evaluating different product architectures in terms of their contribution to core competency growth.


Core competencies are a particular set of skills that employees of an organisation need to help them succeed in business. Use brief bullet points, not phrases or sentences, when integrating core competencies in your resume.

In terms of production, this makes the work a little easier. The hard task is to choose whether to restrict your list or select the most appropriate competencies. Few of the core competencies are:

  • Analytical Thinking
  • Client Service
  • Conflict Resolution
  • Corporate Training
  • Creative Thinking
  • Decision Making
  • Empowers Others
  • Ethics
  • Evaluation Skills
  • Excellent Communication

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