Core Competencies with an Organisational Example

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Core Competencies of MSIL:
Core competencies of an organization can be simply defined as a set of qualities, which are unique to that particular organization that cannot be easily imitated by its competitors. Core competencies are factors which give competitive advantage to the organization in its chosen market. Core competencies may be of various types- technical know-how, relationship with customers, employee-dedication, manufacturing process etc. An analysis of the Maruthi Suzuki India Ltd. shows three core competencies: 1. Strong Customer Base and brand Image

2. Well developed sales and service network throughout India. 3. Very Strong knowledge of Indian market.
A detailed study of these core competencies shows how each of these core values can improve the company’s competitive advantage. 1. Strong Customer Base & Brand image

The MSIL has a market share of about 55% in the Indian passenger car segment and is the largest manufacturer of small cars in India. The company have been voted as first by Indian customers for level of customer service and customer satisfaction. The company manufactures affordable small cars which serve the needs of an average Indian customer faithfully and hence have a strong brand image as the common man’s car in India, which an average Indian customer identifies with. Such a strong brand image and huge customer base can sustain the position of the company as the market leader in the Indian small car segment. 2. Well developed sales and service network throughout India.

The Maruthi Suzuki India has a strong dealership network comprising more than 450 cities across India and a huge service network of more 2750 franchises of service outlets spreading about 1300 cities throughout India. Such a widely distributed sales and service network can help the company to relate with its customers across India and also facilitates bargaining power with suppliers and increase profitability. Also it has ‘Maruthi True...
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