Prahalad & Hamel Core Competencies Model

About the Core Competencies Model

A core competency is a combination of skills and resources that creates a competitive advantage for an organization. Prahalad and Hamel’s model focuses on how organizations can identify, cultivate, and maximize core competencies to fuel growth. There are three elements:

Clarify Core Competencies: by identifying and explicitly articulating core competencies, organizations can drive a high degree of clarity in business decisions and resource allocation, and can focus on strategies that maximize competitive advantages.

Develop Core Competencies: organizations should take steps to enhance its core competencies. This is achieved by investing in technology, forming strategic partnerships, and effectively allocating resources.

Core Competency Mindset: embrace a long-term mindset, break down business unit silos, and identify and develop leaders with the skills to build core competencies that will be crucial in years to come.