Core Competency Theory

Core Competency Theory suggests that a company's success depends on its unique strengths—such as specialized skills, technologies, or processes—that differentiate it from competitors. These core competencies enable a business to deliver value, innovate, and achieve a competitive advantage. Focusing on what the company does best allows it to develop products or services more effectively, increase efficiency, and adapt to market changes. Ultimately, identifying and nurturing these core strengths helps organizations sustain growth and long-term success by leveraging their distinctive capabilities.