Core Competences Prahalad & Hamel (1990) Definition: Core competences make a disproportionate contribution to ultimate customer value, or to the efficiency with which the value is derived, and Provide a basis fo entering new markets Example of a Core competence Company Examples for this Core competence Superior manufacturing skills in producing a high quality product Superior system for delivering customer orders accurately and swiftly Better after-sale service capability More skill in achieving low operating costs Superior product design capability Unusual innovativeness in new product development Better merchandising and product display skills Superior mastery of an important technology Better marketing and customer research Unusually effective sales force Expertise in integrating multiple technologies to create whole families of new products