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Core competency
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<p>A core competency is a concept in management theory introduced by <a href="/facts/C._K._Prahalad/TBDPwKfF">C. K. Prahalad</a> and <a href="/facts/Gary_Hamel/pfQIAfvU">Gary Hamel</a>. 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. </p><p>Core competencies fulfill three criteria: </p> <ol><li>Provides potential access to a wide variety of markets.</li> <li>Should make a significant contribution to the perceived customer benefits of the end product.</li> <li>Difficult to imitate by competitors.</li></ol> <p>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. </p>