Three tests to identify a core competency
Threat of imitation
A core competence should be difficult for competitors to imitate.
3
Customer benefits
A core competence should make a significant contribution to the perceived customer benefits of the end product.
2
Access to markets
A core competence provides potential access to a wide variety of markets.
1
A competence will be difficult if it is a complex harmonization of technologies and human capabilities and skills. A rival might acquire the same technology but will find it difficult to duplicate the comprehensive pattern of internal co-ordination, routine and learning.
Customers believe that they cannot do without the firm's product or service.
For example, competency in display systems enables a company to participate in businesses as diverse as computer monitors, phone screens, automotive dashboards.
