Question

Select a logistic company and describe the difference between the company’s core competency and a skill that the company is really good at doing.

Answer 1

Core competency is what the firms excel at and that which adds significant value to customer.

Core competencies are

• Skills/competencies – e.g. Gucci- designing
• Capabilities – e.g. Honda-small engines
• Assets- e.g. Apple- brand equity

Core competencies

• Are internal
• Controllable
• Do not diminish with use unlike physical assets

Federal express core competencies

-speed and reliability

Fedex competencies like Deep know how of distribution, Aircraft operations and distribution technology expertise

Offer it an advantage of speed and reliability

This core competency:

• Provides potential access to a variety of markets
• Contributes to the uniqueness of the firm’s product or service and the perceived customer benefits(adds value)
• Is difficult for competitors to imitate

FedEx skill-

Truck /fleet maintenance is a strength of FedEx. It is really strong at it but competitors like UPS are also equally strong at it -no uniqueness, sustainability and does not offer advantage over competitors