Cohen's Value Of Equity

The core competency of an organization shows what makes them unique in order to have an advantage in competing with competitors in the same industry. Nordstrom’s core competency is rooted in its strategy providing superlative customer service. Nordstrom values their employees as their most valuable asset or capital in the organization.

Investopedia defines core competencies as “the main strengths or strategic advantages of a business.” Furthermore Investopedia describes core competencies as “the combination of pooled knowledge and technical capacities allowing a business to be competitive in the marketplace.” (Investopedia 2014). Considering these definitions, the following are Croc’s core competencies:

All companies have core competencies that they use to differentiate their company, product, or service from the competition, Sears is no exception. Also, it is common for a company’s core competencies to change, as their industry progresses through phases and shifts its emphasis between product and process innovations (Regis University, 2011), Sears is no exception. Yet, when a company’s core competencies become misaligned and no longer supports their strategic intent the business is in danger of becoming obsolete (Regis University, 2011), as their customers no longer perceive the unique benefits the company has

Before i go further let me touch on a brief introduction on customer value, customer value can be defined as the difference between what a customer gets from a product and what he or

Having customer value is very important. Customer value is determined by customers’ perception of what they get in exchange for what they have to give up. In order to meet the buyer’s expectations, the salesperson must be fully honest and lead the buyers at their best interests and needs.

Core competencies are the capabilities that are critical to a business achieving competitive advantage. The starting point for analysing core competencies is recognising that competition between businesses is as much a race for competence mastery as it is for market position and market power. (Prahalad and Hamel)

Based on this week’s reading, core capabilities or competencies are defined as the main strength of organization based on their specific knowledge sets, skills, and technical capacities that render organizations competitive advantage in the industry (Bateman and Snell, 2014). When organizations are rooted in well-established core competencies, it would be difficult for competitors to imitate their competitive advantage.

Core competence is one of the important concepts that were introduced for the understanding of product

Although core competencies are developed over time, they are never too late to try and find what works best for the success of a company. According to investopedia 2015, Knowledge and skills are what betters core competencies, and they are both also allows for companies to develop and continue to strive. The same set of core competencies should be possessed and demonstrated by all members of an organization regardless of their job or title.

Core competencies are the most significant value creating skills within a company and key areas of expertise that are distinctive to a company and critical to the company's long-term growth. Core competencies are the pieces that a company is superior than its competitors in the critical, central areas of the company where the most value is added to its products. These areas of expertise may be in any area from product development to employee dedication. A competence which is central to business's operations but which is not exceptional in some way is not considered as a core competence, as it will not generate a differentiated advantage over rival businesses. It follows from the concept of core competencies; resources that are

To begin with, heterogeneity of capabilities and resources of firms, which is explained as “enduring and systematic performance differences among relatively close rivals”, provides a foundation of the resource-based view (Song, et al.,2006). The implication of this assumption is that core competence conveys the valuable and unique feature of products to customers. The RBV disagrees with the opinion that the resources are homogeneous; if homogeneity is assumed to be essential to develop a proper strategy, the strategy can be easily copied by competitors, which will ultimately result in the dissipation of above-normal rents. Conversely, the unique and fixed resources on hand will lead to outstanding performance and ultimately turn to be a competitive advantage, under the circumstances that sustainable competitive advantage is achieved in an environment where competition does not exist.

One topic that interested FlexCon managers was a discussion of how core competencies relate to outsourcing decisions. FlexCon management commonly accepted that a core competency was something the company "was good at." This view, however, is not correct. A core competence refers to skills, processes, or resources that distinguish a company, are hard to duplicate, and make that firm unique compared to other firms. Core competencies begin to define a firm's long run, strategic ability to build a dominant set of technologies and/or skills that enable it to adapt quickly to changing market

| 1. Porter, M. E. (2008) The five competitive forces that shape strategy, Harvard Business Review, Jan, Vol. 86 Issue 1, p78-93, 16p (available via NORA) 2. Prahalad C. K. and Hamel, G (1990) The Core Competence of the Corporation, Harvard Business Review, May-June. Available via NORA

Core competency is said to resource allocation, capabilities, knowledge, skills, and expertise along side price chain. It wants 3 elements: skills, resources and processes, and it is communication,

According to Griffin & Pustay (2005), a core competency is a distinctive strength or advantage that is central to a firm¡¦s operations, and by utilising its core competency in new markets, the firm is able to increase