What are core competencies?

What are core competencies? How do firms that adopt an international strategy utilize their core competencies? How do firms that adopt a transnational strategy utilize their core competencies?

A core competency is the ability of an organization that makes it different from other organization in the same line of business. Or at least that is what is considered by the organization to be true about it. It could be the outlook of the company, its operational capacity or the set of technology that it utilizes in its business. Firms that utilizes their core competencies in an effective way can beat their competitors. They can utilize their core competencies I making their business operations more reliable and financially viable compared to their competitors. In the case of transnational strategy, a company can utilize their core competencies in their supply chain management.