Core Competencies and Corporate Strategies: A Marketing Analysis

This essay delves into the concepts of core competencies and corporate strategies, drawing upon the marketing management theories of Prahalad and Hamel, and illustrating these ideas with the example of Cadbury. The essay explores how core competencies, encompassing skills, knowledge, and organizational abilities, are crucial for business expansion and differentiation. Corporate strategies, which provide the business blueprint, are examined in relation to market targeting and competitive positioning. The essay highlights the importance of aligning core competencies with corporate strategies, emphasizing the significance of both internal expertise and external resources, such as outsourcing, to achieve optimal performance. The Cadbury case study showcases how core competencies in areas such as product quality, customer relationships, and social responsibility contribute to financial success and market leadership. The essay concludes by reiterating the symbiotic relationship between core competencies and corporate strategies for business success.

Running Head: Core Competencies.
Marketing Management
Corporate strategies by Prahalad and Hamel.

Core Competencies.
Concept of core competencies
The essay discusses the concept of core competencies using the example of Cadbury.
Thereby the notion of corporate strategies given by CK Prahalad and Gary Hamel is studied
thoroughly. In order to expand the business, there is a need for both core competencies and
corporate strategy. Core competencies figure out the skills, knowledge, and ability of the
individual or particular section of the organization. Corporate strategies help in constructing
the blueprint of the business and targeting the market where the business could excel.
Relating both the terms core competencies and corporate strategies the higher position could
be attained in the market area. The organization will build up strategies keeping in mind the
power point and USP of the business and set up the level of competition for competitors.
Competencies are the knowledge, skills, and abilities that a person holds on. It
emphasizes on deep knowledge and quality of work rendered. Competencies assist in the
expansion of mind and sharpening the interpersonal skills. It is the qualities that differentiates
an individual or in a broader sense an organization from the competitor and other related
organizations. It is that unique point which every business requires to reflect a distinct image
in the market. This image could be made by both lowering the cost and increasing the quality
and setting the fixed proportion of both the quality and quantity. The core competencies focus
on the best performance and increased work efficiency. It could be bifurcated in four modes
i.e. organizational, personal care, outsourcing and developing core competencies (Ingram,
2017).
The organizational competencies oscillate around a specific quality. No organization
is cent percent adequate and qualified in every aspect of the business but the crux is to gain
expertise at least in one or more field and set a remarkable benchmark which could not be
easily attained by the competitors. In a company multiple departments work together to come
out as the best, the competent individual of all field needs to be selected to excel and grow
ahead in the external market establishing a better goodwill in order to attract the consumers,
investors and other related stakeholders. This way the organizational and individual
competencies link together to create wonders (SHRM, 2012). To justify the latter personal
core competencies are embraced which states about the quality of an individual to perform
the activity and to run the sole business. As the organizations differ from each other so as the
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Core Competencies.
people, some consist of better leadership quality and can prove to be a good manager while
other lacks the leadership but owns the marketing tactics and can influence the customers
perfectly thereby enhancing the business. It depends upon the individual traits along with
deep research, knowledge, and practice in the interested field (Silverthorne, 2009). To gain
competencies a lot of investment is required in the study field. Now the problem that arises is
how to engage all the experts at a single base thus to resolve this issue outsourcing opts.
Outsourcing helps in clubbing the individual and organization by saving the recruitment cost
and accomplishing the desired work because a company is not able to hire all the gems at
one. Some cream employees are working within while for certain contract or projects which
are time being are rendered to other people in different organization paying them on the
contractual basis likewise saving the hiring and training cost. Most of the time small
organization outsources the finance and account experts to scrutinize the business financial
affairs at the time of closing, contacting the civil engineers for partial construction at a
specific area and paying them for accomplishing their part. This helps in diverting the work
and retaining the efficiency to stay in the lime light (Sperling, 2009). Till now the emphasis is
on creating and enhancing competencies but the root is that some portion is inherent while
other is need to be developed to gain the exact perfection. In order to develop the
competencies individual as well as an organization needs to work on their very own strength,
picking up challenges and learning from the mistakes (Ingram, 2017).
To illustrate core competency even better it could be explained with the help of a live
example of Cadbury dairy milk. Cadbury was initiated by John Cadbury in the year 1824 by
opening a small shop of tea and coffee in Birmingham. Later on cocoa and drinking chocolate
was also introduced and likewise business was flourishing. The core competencies of the
Cadbury are attaining a high financial position and maintaining the top quality of chocolate.
In order to maintain the quality best cocoa is been used which is imported from Ecuador &
Venezuela; these are the country which provides best raw cocoa (Cadbury, 2017). The main
product and brand that is concentrated more are Cadbury Dairy milk but to expand and
introduce more variety will help in fulfilling the financial goal as well. Thus, divergent
varieties of dairy milk were inaugurated namely Cadbury dairy milk fruit and nut, hazel nut,
silk, almond silk, bubble and much more in different size, shape, and design. To stay
connected with the customers there is a need to be in everyone’s reach. This will help in
growing the business and varieties to attract the customers (Google user content, 2017).
Cadbury introduced the small shots, bytes, gems and other products available in small
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Core Competencies.
packaging, this brought the revolution in the field of sweet snacks which are easy to carry and
do not create a mess as other bars of it do at times. Another perspective of the company was
to follow and regulate the social responsibility of business towards community; therefore it
renders healthy stuff with good quality and adequate quantity at reasonable prices. This
example clarifies the idea of core competencies and how to maintain such competencies and
its importance (Chatterjee, 2004).
Core competencies are individually related to the person and organization discussing
the interpersonal skills and qualities they master in whereas the corporate strategies are in
connection with the business only. Corporate strategies are the framework and plan that is
adopted in order to accomplish the objective. These are the strategies which are acquired to
successfully run the business for a longer period of time. Keeping in mind the changing
business environment prior preparation should be done and anticipatory strategies should be
implemented so as to adopt the changes and positively respond to it. For that sake, business
model should be constructed attaching the flexibility to it so that scope of changes remains
and betterment could be driven out from it. Corporate strategies are also inculcated to fight
with the macro environment that prevails (Mckinsey, 2017). Other than the constant changes
there are other factors as well that affect the business and they maintain the position in the
market, be an innovator, fight the competitor and follow the social obligations. The most
common technique used to analyze the corporate strategies is SWOT analysis where the
organization could figure out weak points and work upon them by applying suitable strategy
and converting the weakness into opportunity and then to strength.
Corporate strategies work better when connected with core competencies. Core
competencies as discussed are the inbuilt and developed expertise that every individual and
organization possess. For organizations, it is essential to identify core competencies and
accordingly designing the strategy to be in a win-win situation (Writepass, 2012). Corporate
strategy is introduced by C K Prahalad and Gary Hamel and they stated that for gaining
development and stand firmly in the market certain strategies should be built up and these
strategies must be constructed by studying the core competencies of the business. Applying
strategies on the disinterested portion will not be a much beneficial decision. When core
competencies are linked with the corporate strategies risk factors starts diminishing as the
experienced and known strategies are easy to implement and knowledge of the related field
helps in dealing with the situations (Harvard business review, 2005). Another strategy that is
highly fruitful in beating up the competitor is to compete with oneself. This can be done by
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Core Competencies.
developing and enhancing own performance, setting up the benchmark and breaking up owns
the record. This will help in the flow of enthusiasm and motivation to achieve the goal
smartly and maintain the best position. If at a certain point some of the decisions are good for
the organization but much expertization is not gained the relevant training should be
undertaken, more emphasis must be paid for that part. Immediate launching should be
restricted and new plan shall be inaugurated only when entire preparation has been made
(Agha, Alrubaiee & Jamhour, 2012). The Cadbury’s example remains intact. In order to
achieve the objective and using the core competencies like making a profit and maintain
quality Cadbury is gaining a lot of customer support as it adopted the relevant corporate
strategies of establishing a customer relationship. This method helps in attracting consumers
as the company obeyed the social responsibility and fulfilling the promise of higher quality
and higher taste which enhances the popularity and it always makes the promotions and
advertisement in such a way that people feel connected with. Wherever the personal
connection has been made the productivity increases and customer relationship blossoms up
and booming relations results in customer loyalty which is very precious for any
organization. Thus, Cadbury’s customer base is strong and getting stronger day after day
leading to the simultaneous growth of organization and individual as well (Shih & Chiang,
2003).
Hence, the essay concludes about the core competencies and corporate strategies
given by Hamel & Prahalad. Core competencies vary from person to person and our inbuilt
under an individual while the organization has to develop certain core competencies to lead
the market. Corporate strategies are the plan that an organization must undertake to establish
the market position and give tough competition by targeting the niche market and attracting
consumers by using innovative or modified techniques. The business is likely to flourish
when core competencies are linked with corporate strategies. In this way, the strong and weak
areas are identified. Using the strength trend could be set while using weakness challenging
opportunities could be given birth and turning solutions can be figured out to create a miracle.
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Core Competencies.
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Core Competencies.
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