Question

Provide an example of one Saudi Company and analyze the steps that the managers in this company can take to achieve its vision and use core competencies.

Kindly don't use the Saudi Aramco example

Answer 1

Core competencies differentiate an organization from its competition and create a company's competitive advantage in the marketplace. Typically, a core competency refers to a company's set of skills or experience in some activity, rather than physical or financial assets. An organizational core competency is an organization's strategic strength. Honda's strategic strength, for example, lies in its engine and propulsion systems. Sony has a core competency in miniaturization. Federal Express has a core competency in logistics and customer service.

Three tests can be applied to determine a core competency:

• A core competency can lead to the development of new products and services and must provide potential access to a wide variety of markets.

• It must make a significant contribution to the perceived benefits of the end product.

• It should be difficult for competitors to imitate. In many industries, such competencies are likely to be unique.

Example:

Apple's unique competence is its product design process. With the iPod, Apple combined the elements of jukebox software, which can organize a large quantity of songs, and MP3 players, which can store a large quantity of songs in a way that is simple to use. Simplicity turned out to be the core attribute that made the iPod a revolutionary product that changed consumer expectations.