Corporate Core Competence Law and Legal Definition

Corporate core competency refers to the particular strengths, extraordinary abilities or skills of a firm in a specific subject area. For example, companies with specific skill in the development of software solutions may be said to have a core competency in that area.

The concept of corporate core competency is of general usage and is applied to all types of businesses. This concept was developed by Prahalad and Hamel. Core competency indicates the strong basis from which to gain the extraordinary competence to do the specific work since such work cannot be imitated by the firm’s competitors. The main components of corporate core competence are corporate span, temporal dominance, competitive locus and learning-by-doing.