Kernkompetenz

Kernkompetenz, or core competence, is a concept in strategic management that refers to the collective skills, know-how, and capabilities that give a firm a sustained competitive advantage and are central to its identity. These competencies are embedded across the organization, span multiple product lines, and are difficult for competitors to imitate.

The concept was popularized by C. K. Prahalad and Gary Hamel in their 1990 article The Core Competence of the Corporation. They argued that firms should identify, nurture, and leverage core competencies to access new markets and create unique value, rather than focusing solely on individual products or technologies.

Core competencies are not limited to specific technologies; they include processes, organizational routines, relationships with suppliers and customers, and corporate culture. They enable a company to enter new product areas, integrate activities efficiently, and innovate in ways that competitors find hard to replicate.

Strategically, firms are advised to map and protect their core competencies, invest in strengthening them, and use them to differentiate offerings. Activities that do not contribute to the core can be outsourced or restructured to free resources for capability development. A potential risk is core rigidity, where overreliance on a single competency reduces flexibility in changing markets.

Examples often cited include manufacturing excellence, product design, and the integration of multiple capabilities into a coherent value proposition. The concept has evolved with critiques that the term can be vague, leading to refinements such as dynamic capabilities and resource-based perspectives that emphasize adaptability and networks.