Hamel and Prahalad's Concept of Core Competence Essay

Hamel and Prahalads Concept of Core Competence - Essay ExampleFormerly, the diversification of the corporation would simply withdraw its business units towards particular end product markets and order them to become leading outlets of the business, but with the ever changing market boundaries, the targets proved to be to elusive with their sustained capture limited. Only a few companies collapse been able to adapt to the ever changing dynamics and thus have been able to capture the lively markets through with(predicate) their inventing of new markets, their quick entry into new emerging markets and, more dramatically, in their shift in patterns on the selection of customers in the already established markets. Therefore, the critical task that various corporate anxiety face, is the creation of an organization that is capable of infusing their variant products and services with effectual and effective functional ability or improving their profiles with the creation of product a nd services that their customers need but have not yet envisioned (Grant, 2005, 182). Such a task is difficult since it ultimately requires the radical restructuring the management of these companies. This in essence gist that the top management of various corporations or companies must accept and assume their role and responsibility in the decline of their companies competitiveness. The theory and practice of the Western type of management is blamed on the creation of a dragging effect on the forward movement of companies. It is thus imperative that the principles of management be changed / meliorate (Grant, 2005, 182). Core competency can be described as a specific factor that, through the business point of view, is centrally responsible for the way the business and by extension its employees perform their duties. by means of its utilization, it can fulfill the following aspects - it cannot be imitated easily by business competitors, it can be apply to put leverage on a wide r ange of products and markets and its core importance is that it must hand to the benefits experienced by the consumers. Therefore, it can take a myriad of forms including customer services, technical/subject calculate knowledge and effective and efficient management of the business. It may include product enhancement, good marketing skills, efficient Human Resource Management among others (Nitschke, 2011, 23). They enable better coordination of the diverse production skills through the integration of different technologies, good communication, good interpersonal skills and an involved and deeply committed work attitude. Consequently, a core competency is achieved through the application of a specific and unique set of skills and or production techniques that will, in the end, give back the expected value to the customer. This in turn, enables the discovery and exploitation of newer varieties of markets. As illustrated by Professor Prahalad and Hamel, core competencies normally le ad to the creation or the core products of a business and in themselves can add many an(prenominal) more products for their end users. These core competencies are enhanced through continued improvements by the companies over a period of time. This build up of the core competencies