What are Core Competencies?
The term “core competencies” refers to your organization’s areas of greatest expertise. An
organization’s core competencies are those strategically important internal capabilities that are
central to fulfilling its mission or a distinctive competence that provides a firm a competitive
advantage in its industry. Core competencies frequently are challenging for competitors or
suppliers and partners to imitate. Absence of a needed core competency may result in a
significant strategic challenge or disadvantage in the marketplace.
Core competencies may involve technology expertise, unique service offerings, a marketplace
niche, or a particular business acumen (e.g., business acquisitions). Core competencies focus
on an organization’s internal capacities and deep proficiencies that enable a company to deliver
unique value to customers. Core competencies also contribute substantially to the benefits a
company’s products offer customers