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Common challenges in applying Core Competency Analysis include identifying true core competencies, avoiding over-reliance on past successes, and maintaining focus on core competencies in the face of market changes. Overcoming these challenges involves a continuous process of evaluation and adjustment. True core competencies should be unique, hard to imitate, and provide customer value. Avoiding over-reliance on past successes requires an openness to innovation and change. Maintaining focus on core competencies requires strategic planning and discipline to resist diversification that dilutes the company's strengths.
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Core competencies introduce a combination of resources and skills that distinguish a business in its respective marketplace. It could be an organization's skills and knowledge base, managerial systems, or technical systems that form a series of values and norms. Core competency theory explains the success of household names like McDonald's, Walmart, Apple, and IKEA. All four brands have honed their mastery of core competencies to focus on what they do best even as they consistently reinvent themselves.(Slide 2)
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What positions your organization as a force to be reckoned with? Use our Core Competency Analysis deck to select, develop, and analyze the resources a...
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