Supply Chain Management - Case Study Example
In this particular article, the authors mentioned the term core competency which can be defined as the collective learning and coordination skills behind the product lines of a firm (Hamel). It was further stated by the authors that core competencies are the main source of competitive advantage and hence they enable the firm to introduce an array of new products and services into the market.
Competitive advantage is the critical advantage that a firm possesses in the market over a competitor in the industry. Almost all the firms in the market try to achieve a sustainable competitive advantage ((ICMR), Marketing Management). The other way of expressing the same would be - when sustained profits that are beyond the average industry profits are earned by a firm, then the firm is said to possess a competitive advantage over its competitors present in the market (Administration). The goal of much of the business strategy of every firm would be to achieve a sustainable competitive advantage.
