Core Competencies, From The Industrial Organization Model

The core competence theory is a new development of the capability theory. The most importance is to use this theory to solve the problem of the business management. The core competence theory is an informal theory. So there has not a united concept. Although a definite concept isn't the base of a theory, a definite concept can deepen the understanding and extend the usefulness of the theory. For this reason, drawing on theories of Hamel "How to Compete for the Future" and Peter M.Senege "The Fifth Practice", I'll support the primary method of developing and fostering the core competence of the firm. This thesis will propose a conception of the core competence, the character of core competence and the solution to identify the core competence of one company. An important part in this thesis is to apply this core competence theory to strategy management.