Relationship between capabilities and core competencies

Through repetition and constant practice capabilities become stronger and more valuable strategically. Critical to sustaining these core competencies are their: Durability - their life span is longer than individual product or technology life-cycles, as are the life spans of resources used to generate them, including people.

what are capabilities?

Capabilities versus Competences Examining the various definitions of competence, some terms are found to occur frequently: skills, knowledge, activities, assets, and competitive advantage. A capability or resource is valuable when it allows the company to capitalize on opportunities or defend against external threats.

A key management function is to identify what resource gaps need to be filled in order to maintain a competitive edge where these capabilities are required. The CEO must champion the capability-based strategy.

The whole purpose is to create and exploit external opportunities and develop sustained advantages over rivals in the field. Competence can also result in an increased quality of work or performance.

resources capabilities and core competencies examples

Consumers were in a learning mode and companies forged strategies like HDFC in home loans, LG in electronics and home appliances market in India, Asian Paints in decoration and industrial paints business to shape their wants. Stalk, Evans and Shulman [] define a capability as a set of business processes strategically understood.

building core competencies and competitive capabilities
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Capabilities versus Competence: How are they Different?