Introduction
A core competency helps an organization to create a unique customer value by applying a special skill or technology.That is why, it helps in adding customer value to products of a particular organization. Strategic management dictates that core competency should be in a position to provide substantial and appreciable value to the customers. In this context, the provided customer value creates a competitive barrier because it is unique and cannot be imitated by the competitors (Riley 1). This means that the core competencies of an organization should help it achieve a competitive advantage.
Therefore, the top management of an organization should pay attention to the competencies that will have an effect on a competitive advantage. Through this, an organization will be in a position to identify the key areas which are contributing to its long term growth. One important thing to note about the core competencies is that they are not fixed. They are supposed to evolve depending on the current changes of the organization environment. As more opportunities are available to an organization, new core competencies are supposed to be developed with an aim of grabbing those new opportunities. This paper is aimed at discussing the core competencies of three organizations namely: Boeing, Sony and Nestle.
Boeing core competencies
Boeing has employed multiple competencies in its businesses, thus making the company an exceptional one. However, this paper will only concentrate on three main core competencies which Boeing identifies itself with. The three core competencies include detailed customer focus and knowledge, implementation of large-scalesystems of integration, and unique partnership with the United States Air Force and NASA (Flyer 1).
Boeing has committed itself to understanding the demands and needs of their customers. This company is always ready to respond to the customers’ demand in designing and implementing specific needs in an aircraft. The company has a unique business structure in which it designs its products according to what customer wants and the customers get the final design waiting for them to buy. The CEO of the Boeing Company by the name Phil Condit introduced a strategy known as Market shaping (Flyer 1).
Due to this strategy, the company understands what their customers require and creates its products according to the desire of the consumers, so the final product just waits for the client to buy it. This builds a strong competitive advantage because the customers are aware that Boeing will design its products according to their needs. It also builds a strong relationship between the customers and the company.
Implementation of large-scale systems integration is another core competency which assists this company to create a strong competitive advantage. The company carries out an extensive research and development in the field of aircraft. due to this, it has come up with a unique wing technology as well as new light composites which have become its stronger manufacturing core competencies (Flyer 3).Boeing has also extended its research to their suppliers and partners and this has helped the company a lot in integrating and designing better aircrafts.
Boeing partnership with the United States Air Force and NASA has helped it gain more popularity in the field of aircraft building. This partnership has also helped Boeing to become the leader in aircraft manufacturing market. The partnership has helped in the growth of the company as well as building a strong competitive advantage over its competitors.
Sony core competencies
Sony had created a strong competitive advantage over its competitors, but in early 21st century, it destroyed its reputation leading to a decline in product competitiveness. Currently, the company is doing its best to build a more sustainable competitive advantage over its competitors (Emerald Group Publishing Limited 14). The new strategies employed by the new executive management team have seen Sony Company launch a succession of competitive products by the end of 2009. The current state of the company is very promising. To achieve its successes, the management has developed two main core competencies.
A major core competency of the Sony Company is miniaturization. Miniaturization led to the development of a portable CD player or the Walkman. This invention added a great value to the customer and it cannot be imitated by its competitors. The strategy which is applied by the new management here is product differentiation. Product differentiation is a stage where a company invents new products or services which are unique and different from what their competitors are producing and are widely valued by the buyers.
This strategy has worked very well for Sony Company in particular devices such as imaging engines and image sensors (Emerald Group Publishing Limited 15). Through this strategy, the company has come up with miniature electronics products with unique innovative designs and very attractive to the buyers.
Currently, the company has also come up with a core competency of providing new user experiences through the integration of innovative software, hardware and services. This has created a stronger competitive advantage in which Sony mobile business has expanded and strengthened. This has also strengthened the collaboration with Sony Ericsson mobile communication, thus creating a solid customer base of the two partners. This collaboration has led to the increase of Sony network-connected products and advancement of technology; these products are hot cakes, and many customers are likely to purchase them. The Sony brand name also plays a great role in marketing its products.
Nestle core competencies
One of the key strategies of Nestle Company is to maintain its leadership in nutritional market. To maintain this leadership, the company has reinforced its competitive advantages in two key areas. The first core competency Nestle is applying to maintain its leadership in the market is creating Nestle Nutrition as an independent global business unit within the organization (“Nestle LC1. Nestle’s Competetive Strategy.” 1). To facilitate its uniqueness, Nestle Nutrition is divided into health care nutrition, infant nutrition and performance nutrition. Due to this separation, customers are well informed on these products thus building trust in them as well as strengthening the competitive advantage.
The last core competency of Nestle is practicing partnership with the world’s largest companies. For instance, Nestle partnership with Coca-Cola Company has benefited from this company a lot. Coca-Cola has a good reputation globally and this partnership definitely improved the reputation of Nestle (“Nestle LC1. Nestle’s Competetive Strategy.” 1).
Conclusion
In order to build a strong competitive advantage, an organization is supposed to develop its core competencies and employ them well. All business organizations should be in a position to employ their core competencies well so that they can create a competitive barrier. This barrier will assist them in outdoing their competitor, thus enhancing their growth.
Works Cited
Emerald Group Publishing Limited. “Sony: death or glory?: Can blue chip giant regain its luster?” Strategic Direction 22.4 (2006): 14-16. Print.
Flyer, Rose. “Boeing’s Competetive Advantage.” Airliners.net. 2004. Web.
“Nestle LC1. Nestle’s Competetive Strategy.” Castelarhost.com. Castelar Articles. 2005. Web.
Riley, Jim. “Core Competences.” Tutor2u.net. 2010. Web.