Gary Hamel created the phrase “core competency” to describe factors in a business. Core competency discusses a specific factor in business that is critical to how it runs or how employees work. There are three important factors as part of his concept. In core competency the factor will provide consumer benefits, not be easy for the competitor to copy, and it can be used on many products or in different markets.
Gary Hamel’s idea can be used in various forms, from technical to relationships a company has with their consumers. It can also work within product development or culture. The approach is meant to strengthen the company by providing added value to the product or market.
Core competency also has a hand in collective learning for the business. Through the proper management of the concept it is easy to learn how to coordinate within a business to use productive skills and integrate other technologies. There is a value chain as part of the core competency.
The value chain is a systematic approach. It allows a look at the development of competitive advantage. The value chain is a concept by M.E. Porter. This concept combined with core competency provides a good look at how strategic management and factors in business interact.
Both concepts work on communication as a base factor in finding the right commitment from each employee that is part of the business strategy. There are usually five to six competencies as part of the whole. Most companies will not have more than that, according to Gary Hamel.