Core Competence


Definition: Core Competence is an inside-out corporate strategy model by Hamel and Prahalad ('90) that initiates the strategy process by thinking first about the core strengths of an organization.
Proponents of this approach argue that in the long run, competitiveness derives from an ability to build a CC, at lower cost and more speedily than competitors.
The outside world (market, competition, customer) is (only) considered afterwards, unlike outside-in strategy tools such as Porter's Five Forces model.
See also Distinctive Capabilities, Dynamic Capabilities.


More on corporate strategy: ADL Matrix, BCG Matrix, Congruent Strategy, Corporate Mission, Corporate Strategy, more...


MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.

© 2023 MBA Brief - Last updated: 6-2-2023  -  Privacy   |   Terms