Core Competency, Product and Market Analysis
Blog: Biz-Performance, David Brown
Description
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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.
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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.
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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
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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)
Approach
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Identify products or services
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How can grow in products?
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What is the required product mix?
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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)
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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)
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For all Product and Service Combinations together
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Group customers in sub-market
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Group product/services in main product groups
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Group required competencies in core competencies
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Spot and keep aware of inter-dependencies
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Choose Product/Market/Competency combinations to serve as basis for strategic decisions or focus sessions.
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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