A core competency is a defining capability or advantage that distinguishes an enterprise from its competitors. It is a combination of skills, knowledge, and resources that is difficult to imitate and central to the company's strategy.

Core competencies were popularised by C. K. Prahalad and Gary Hamel. They should provide access to multiple markets, contribute significantly to perceived customer value, and be hard for rivals to copy. Examples include Honda's engine expertise and Apple's design and ecosystem integration.

Key points

• Defining capability or advantage
• Difficult to imitate
• Central to strategy
• Provides access to multiple markets