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Exercise – Core Competences

Core Competences

The Core Competences of Amazon.com

Here’s a recap. A core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer. Such competences give an organization access to a wide variety of markets. Hamel and Prahalad (1990) refer to a number of organizations and their products to support their concept including NEC, Honda and Canon.

Three tests of core competence.

  • Provides potential access to a wide variety of markets.
  • Should make a significant contribution to the perceived customer benefits of the end product.
  • Should be difficult for competitors to imitate.

Consider the well-known brand Amazon.com

  • 1. What are Amazon’s core competences, threshold competences, scarce resources, and threshold competences? Plot them onto the diagram

  • 2. What are Amazon’s material resources, human resources, and intangible resources? Plot them onto the diagram.

Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.

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54 years ago

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