Blog Posts Process Analysis

Core Competency, Product and Market Analysis

Blog: Biz-Performance, David Brown


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    Identification of the “core of uniqueness” of a company and their combinations in areas such as products and services, markets and market segments and activities and competencies. It also serves as the basis for a rethinking of the strategic orientation and will help to define and embody in those activities a unique competitive position.
  • A Competency and Product/Market combination is the use of a core product in a market, providing end products for specific customers. A core product is an application of one or more core competencies and is a link between a core competency and end products or services.
  • A core competence will provide potential access to a wider variety of markets and a high entry barrier for potential competitors. It has to make a significant contribution to the perceived benefits of the end product and is difficult to imitate by competitors.

When To Use

  • Most likely within the first three phases (Arouse, Envisage and Focus) of the project to generate the need for change within the senior management and to orient and assist with a strategic thinking exercises about the core of uniqueness of an organisation (Business Position, (Confirmed) Business Vision)


  1. Identify products or services
    1. How can grow in products?
    2. What is the required product mix?
  2. Characterise/specify the activities that constitute the product or service, for example, engineering, production control, material management, consultancy, etc. (create a 1 to 4 page description for each activity)
  3. Identify the required competencies for each Product and  Services Combinations e.g.: total aircraft engineering concept, technological knowledge & access to external resources, airline experience, modern facilities, skilled & motivated workforce partnership capability, customer oriented attitude, etc.(provide a 1 to 4 page description and possibly some figures)
  4. For all Product and Service Combinations together
    1. Group customers in sub-market
    2. Group product/services in main product groups
    3. Group required competencies in core competencies
  5. Spot and keep aware of inter-dependencies
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  1. Choose Product/Market/Competency combinations to serve as basis for strategic decisions or focus sessions.
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The following generic examples show how a company can structure itself to align Core Competencies and Products to Customers and Markets through the use of Business Units.
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Core Competencies and Core Products.png

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