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Mac
1
Mac, USA

Collaboration and CC

How can a firm avoid that its core competence(s) are threatened when it is collaborating with other firms such as in demand chain collaboration or outsourcing?

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  Pete
0
Pete, US
 

Outsourcing Parts of a CC

In general, mixing outsourcing and core competence strategies is not a good idea. Knowledge is at the heart of most CCs and by outsourcing parts of a CC you risk to lose the leading edge know-how that is necessary to sustain your CC.
Furthermore you risk transfering crucial know-how to the outsourcing provider who may emerge later as a strong competitor.

  Wael
0
Wael, KSA
 

An Example

I totally agree with Pete. IBM PCs are one of the greatest examples. When IBM outsourced its processors to intel, IBM lost its CC and therefore competitive advantage. The above resulted in consumers wanting to buy any PCs which are "intel inside" instead of IBM PCS.

 

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More on Core Competence
Summary Discussion Topics
topic Why Protect Core Competence?
topic CC as an Organisational Trait(s)
topic Identifying a Core Competence
topic Imitation of Core Competence
topic Core Competency versus Corporate Competency?
topic The Virtual Company and Core Competences
topic Utilizing a Core Competence
topic Always link Strategy to CC
topic Financial Valuation of a Core Competence
topic Core Competences and Porter's 5 Forces
topic Is CC REALLY Different from FF?
topic Leadership & Core Competence
topic Core Competency Should be Challenged
topic Integrating the Core Competence
topic People are our Greatest Asset
topic Core Competences Change due to ICT
topic Defining New Services / Capabilities
topic Outside- in vs. Inside-out
topic Examples of Core Competences
topic Is There Any Difference Between a Competence and a Competency?
👀Collaboration and CC
🔥 The Role of AI in Core Competence
Special Interest Group
Knowledge Center

Core Competence


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