What is a Core Competency?
John Spacey, updated on October 26, 2016
A core competency is a capability that represents a valuable competitive advantage for a firm or individual. The following are general definitions of the term.
Definition (1)Something that a firm needs to do well in order to be competitive in a particular industry or market.
Definition (2)A skill that is considered an strict requirement for a profession.
Definition (3)An ability or knowledge that makes a professional valuable to employers.
Definition (4)A valuable competitive advantage that it critical to a firm's profitability.
Definition (5)A capability that is a key differentiation between firms in an industry or market.
Definition (6)A valuable process, pattern, practice, skill, culture, design, knowledge collection, database, technology or formula that allows a firm to outcompete in a set of markets.
NotesIn practice, core competency is typically used to distinguish between areas that are critical to a firm's competitiveness and areas that are ancillary. For example, a fashion company may view financial accounting as ancillary and design as a core competency.
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