Core Competencies.Doc
Introduction
Today in Hong Kong, many organizations have their own business strategy that helps them compete successfully in the markets. There is a proverb, “to know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat”. The competitive advantage is a set of objectives, plans, and policies. One of the most important factors of developing a business strategy is identifying the organization’s core competencies. Therefore, an important part of strategic planning is identifying and predicting the core competencies.
Core Competencies
According to Prahalad and Hamel (1990)
“Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.”
From their points of view the core competencies are the collective knowledge and skills that distinguish an organization from the competition, which should also be difficult for the competition to imitate. In effect, core competencies provide the basis for developing new products and services, and they are a primary factor in determining an organization’s long-term competitiveness. Moreover, a true core competence, and could provide a competitive advantage.
To know the core competencies could achieve a competitive advantage. It should be include some analysis or theory, e.g. the PESTEL, SWOT, EVR Congruence, Capabilities and 5-Force etc. Let us try to discuss under the followings.
Core competence at The Kowloon Dairy Ltd.
Kowloon Dairy was founded in 1940 by Mr. George Ahwee and Mr. Rudy Choy. At the beginning, the company produced only fresh milk. Today, they have diverged into producing a variety of milk drinks and ice-cream products. She is one of the major suppliers of milk products in Hong Kong. The following are the analysis of Kowloon Dairy’s competitive strategies for achieving the organization’s competitive advantage.
PESTEL Analysis for The Kowloon
Today in Hong Kong, many organizations have their own business strategy that helps them compete successfully in the markets. There is a proverb, “to know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat”. The competitive advantage is a set of objectives, plans, and policies. One of the most important factors of developing a business strategy is identifying the organization’s core competencies. Therefore, an important part of strategic planning is identifying and predicting the core competencies.
Core Competencies
According to Prahalad and Hamel (1990)
“Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.”
From their points of view the core competencies are the collective knowledge and skills that distinguish an organization from the competition, which should also be difficult for the competition to imitate. In effect, core competencies provide the basis for developing new products and services, and they are a primary factor in determining an organization’s long-term competitiveness. Moreover, a true core competence, and could provide a competitive advantage.
To know the core competencies could achieve a competitive advantage. It should be include some analysis or theory, e.g. the PESTEL, SWOT, EVR Congruence, Capabilities and 5-Force etc. Let us try to discuss under the followings.
Core competence at The Kowloon Dairy Ltd.
Kowloon Dairy was founded in 1940 by Mr. George Ahwee and Mr. Rudy Choy. At the beginning, the company produced only fresh milk. Today, they have diverged into producing a variety of milk drinks and ice-cream products. She is one of the major suppliers of milk products in Hong Kong. The following are the analysis of Kowloon Dairy’s competitive strategies for achieving the organization’s competitive advantage.
PESTEL Analysis for The Kowloon
References: Guth, W.D. (1980), “Corporate growth strategies”, Journal of business strategy, Vol. 1, No, 2, Fall, pp.56-62. Porter, M. (1979), “How competitive forces share strategy”, Harvard Business Review, Vol. 57, No. 2, March-April, pp.64-74 Porter, M (1984), “Competitive Advantage”: New York, NY, The Free Press Porter, M (1985), “Competitive Advantage: Creating and Sustaining Superior Performance”, New York, NY The Free Press Prahalad, C.K Stalk, G.., Evans, P., Shulman, L.E. (1992), “Competing on capabilities: the new rules of corporate strategy”, Harvard Business Review, pp.57-69. Thompson, J.L. (1999), “A Strategic Perspective of Entrepreneurship”, International Journal of Entrepreneurial Behaviour & Research, Vol. 5, No. 6, pp.279-296. Vilijoen, John (1994, 2nd ed.), “Strategic Management : Planning and Implementing Successful Corporate Strategies”, Longman Australia,, pp.243-245.