Core competencies are extremely important for companies of all sizes because they offer value to customers. For core competencies to be true or legitimate, they need to be the differentiating factor for the company. For example, a technology company may have a core competency in developing internet search algorithms or in designing high-speed microprocessors, both of these are quite hard to replicate. Similarly, organizations operating in other sectors will have core competencies in other areas. However, these organizations need to remember that for core competencies to be developed, they first need to identify important internal strengths and then invest in them to provide value to customers.
When we talk about quality in organizational terms, we actually refer to performance and reliability. Automakers from Japan, for example, took over the automobile market effortlessly. This isn’t surprising given that for these companies, their core competencies have been built around one factor – quality. The Japanese companies were a different lot in the crowd because they introduced many new things; a majority of which were previously unheard of in their industry. For example, they introduced to the market total quality management and just-in-time manufacturing. These were the qualities the companies brought in at all levels of manufacturing and design.
A number of companies operating in various sectors have been able to achieve their market positions because they have been successful in identifying what their customers expect from them and then delivering it to them. It is for this reason such companies are able to quote high prices and even achieve targets without any difficulty. Also, these companies tend to enjoy higher levels of customer loyalty.
Companies that innovate regularly and have a passion for it generally have a competitive edge in the marketplace. So, if you have been wondering what the core competencies of an organization should be, then constant innovation is certainly one of them. This is where small businesses can separate themselves from the crowd and compete really well with the bigger companies. However, the key for these companies is to be nimble-footed and strive for innovation. For example, Whirlpool has structured ideation sessions that let every employee of theirs present their ideas and thus contribute to the company.
In order to stay competitive and relevant in their industry, companies need to be flexible in every aspect. For example, small companies can consider venturing into markets where bigger companies don’t have a presence or even consider teaming up with another company to gain valuable market share. For big companies, it is also equally important to be flexible. After all, they need to check on the ever-changing customer preferences and business situations that can baffle even the established multinationals.
Providing excellent customer services is what can help small businesses to stay apart in the competitive world. When you have quick and reliable customer support services, then the customers will sit back and take a note of it. It will provide them an assurance that their interests will be protected. Every employee in the organization must have a strong customer orientation.