Identifying Core Competencies
Core competency is a concept in management theory that is a combination of resources and skills that enable a firm in the marketplace to compete and meet certain criteria such as access to many different markets, something that is difficult to mimic other competitors and what contributes to the benefit of the customer with their product.
Three important core competencies are reliability, motivation and decision-making. These are all very important within a business. When a customer invests in a certain product they want to know that the product they are investing in will be reliable and live up to the standards as it should. The company also needs to be motivated to reach certain goals and have that drive to accomplish what needs to be done to better suit the customers as well as the company. Decision-making is very important because a business relies on effective decision making. When a leader makes a decision based on operation or a product they are creating, they must think about how it will affect the company in the future, they must make sure that the decisions they make are going to make the business thrive in the future and not cause issues further down the road. Often it’s better to look at the long-term effect on the business then the short term (Investopedia, 2018).
Competitive advantage in a company is where a company is able to offer a product or a service at a competitive rate or in a timelier fashion. This is very affective for a business and important because it helps separate the product from other companies. If we are able to offer a product with the same reliability but a smaller rate then the amount of business that we bring in will potentially be higher, which in the end will lead to a greater net profit for the company (Investopedia, Competitive Advantage, 2018).
A company must have a good marketing strategy as well as competitive pricing and turn around for a product. In order to have a successful business, it’s a necessity to offer the best product possible that holds up to the promises that we offer with it. In using that as well as pricing that competes with other products or similar companies we will be able to have a successful company and keep our customers coming back. In using a great marketing strategy, we will be able to get our products out to the public whether it’s using social media, ads in local papers or even radio ads. In developing a good marketing strategy, it will help the company be positive in knowing that we are doing everything we can to market our product and generate sales.
Investopedia. (2018). Competitive Advantage. Retrieved from Investopedia: https://www.investopedia.com/terms/c/competitive_advantage.asp
Investopedia. (2018). Core Competencies. Retrieved from Investopedia: https://www.investopedia.com/terms/c/core_competencies.asp