[1] It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.
[citation needed] Importantly, according to C. K. Prahalad and Gary Hamel (1990) definition, core competencies are the "collective learning across the corporation".
Executives should develop a point of view on which core competencies can be built for the future to revitalize the process of new business creation.
Developing an independent point of view of tomorrow's opportunities and building capabilities that exploit them is the key to future industry leadership.
In a race to achieve cost cutting, quality, and productivity, most executives do not spend their time developing a corporate view of the future because this exercise demands high intellectual energy and commitment.
The difficult questions may challenge their own ability to view the future opportunities but an attempt to find their answers will lead towards organizational benefits.
"[7] Approaches for identifying product portfolios with respect to core competencies and vice versa have been developed in recent years.
[9] More recently Hein et al. link core competencies to Christensen's concept of capabilities, which is defined as resources, processes, and priorities.