Question

Identify the prominent features of the company's current business and functional strategies, and consider the Best Buy family of complementary products and services. How has the company's strategy fostered the development of core competencies?

Answer 1

Core competency is the primary skill of a organisation in the process of delivering value to the customer.

A famous quote for core competency is as follows:-

"If core competence is about harmonizing streams of technology, it is also about the organization of work and the delivery of value."

A organisations competitiveness derives from its core competencies and core products Core competence is the collective learning in the company.

It is the capacity to coordinate different production skills and integrate various streams of technologies or we can say it is the way by which we can increase our production through technology. It is also a commitment to working across organizational boundaries. Organizing around core competencies requires a radical change in corporate organization.

by identifying core competencies we will have,

1. Potential access to a wide variety of markets.
2. make a contribution to the customer benefits of the product
3. Redesign the architecture of the company and provide an impetus for learning from alliances and a focus for internal development.

company's strategy & core competencies

Strategy of company always based on the profit not on the customer values whereas the core competencies are the basically based on the customer values . Firms focusing on the strategic business look solely to the growth and profit making .this leads to the devaluation of operation areas such as employee and resources .This turn the loss of core competency .

i.e any company have core competency or core values as ,

T- team work

R- Responsible

I-integrity

P- passion

And if company will start focusing just on strategy these values will not be developed or achieved.

To develop or maintain core competencies need to understand the value proposition provided to customers and identifying the resources and internal abilities that allow the firm to better provide that value. The firm must then foster these resources and abilities by allocating resources to them. This may include: allocating capital and existing resources, changing business structure (see vertical and horizontal integration) making external relationships, engaging in research and development,promoting employee training and creativity.