Page 42 - E2 Integrated Workbook STUDENT 2018

Chapter 3

Resources and competencies

3.1 Competencies

Resources are combined together to achieve a competence. There are two types
of competencies.

Threshold Core

 Threshold competencies are those actions and processes that you must be
good at just to be considered as a potential supplier to a customer. If these are
not satisfied, you will not even get a chance to be considered by the customer.

 A core competence is something that you are able to do that is very difficult for
your competitors to emulate and is of value to the customer.

These core competencies form the basis of distinctive capabilities which can
provide the organisation with competitive advantage over others within that market,
or allow the organisation to change the competitive forces in that market to their
advantage.

According to the resource-based view of strategy:

Core competencies are the key to competitive advantage

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