Issue 3, 2003

Prahalad C. K., Hamel G. The Core Competence of the Corporation

This article became a catalyst for the new perspective in strategy research. The importance to firms of dynamic core competencies is discussed. The argument is made for shifting the focus from understanding the firm as a portfolio of businesses to the concept of the firm as a portfolio of competencies. Authors suggest that it is «the core competence» — the firm’s central asset — where it’s competitive advantages reside, in other words, that competencies are the roots of so-called «strategic architecture» of the firm.

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