Core Competencies of Wal Mart and Honda Instruments for Their Growth
Strategic Management
Term Paper
Core competencies of Wal mart and Honda Instruments for their Growth
By: Hari Kiran Babu.G (0711) Naga Mounica.G (0723) Sai Krishna Chaitanya (0736) Surabhi Rajan (0749) Sobhan Pavan Tej .K (0641)
Core Competencies
Core competencies lead to the development of core products. Core products are not directly sold to end users; rather, they are used to build a larger number of end-user products. For example, motors are a core product that can be used in wide array of end products. The business units of the corporation each tap into the relatively few core products to develop a larger number of end user products based on the core product technology.
The intersection of market opportunities with core competencies forms the basis for launching new businesses. By combining a set of core competencies in different ways and matching them to market opportunities, a corporation can launch a vast array of businesses. Without core competencies, a large corporation is just a collection of discrete businesses. Core competencies serve as the glue that bonds the business units together into a coherent portfolio.
Core competencies arise from the integration of multiple technologies and the coordination of diverse production skills. Some examples include Wal Mart’s Logistics and Honda’s engines. There are three tests useful for identifying a core competence. A core competence should:
• Provide access to a wide variety of markets, and
• Contribute significantly to the end-product benefits, and
• Be difficult for competitors to imitate. To better understand how to develop core competencies, it is worthwhile to understand what they do not entail.
• Outspending rivals on R&D
• Sharing costs among business units
• Integrating vertically
Core competencies manifest themselves in core products that serve as a link between the competencies and
Term Paper
Core competencies of Wal mart and Honda Instruments for their Growth
By: Hari Kiran Babu.G (0711) Naga Mounica.G (0723) Sai Krishna Chaitanya (0736) Surabhi Rajan (0749) Sobhan Pavan Tej .K (0641)
Core Competencies
Core competencies lead to the development of core products. Core products are not directly sold to end users; rather, they are used to build a larger number of end-user products. For example, motors are a core product that can be used in wide array of end products. The business units of the corporation each tap into the relatively few core products to develop a larger number of end user products based on the core product technology.
The intersection of market opportunities with core competencies forms the basis for launching new businesses. By combining a set of core competencies in different ways and matching them to market opportunities, a corporation can launch a vast array of businesses. Without core competencies, a large corporation is just a collection of discrete businesses. Core competencies serve as the glue that bonds the business units together into a coherent portfolio.
Core competencies arise from the integration of multiple technologies and the coordination of diverse production skills. Some examples include Wal Mart’s Logistics and Honda’s engines. There are three tests useful for identifying a core competence. A core competence should:
• Provide access to a wide variety of markets, and
• Contribute significantly to the end-product benefits, and
• Be difficult for competitors to imitate. To better understand how to develop core competencies, it is worthwhile to understand what they do not entail.
• Outspending rivals on R&D
• Sharing costs among business units
• Integrating vertically
Core competencies manifest themselves in core products that serve as a link between the competencies and