ABSTRACT

G. Hamel and C. Prahalad define core competences as follows: ‘A core competence is a package of skills and technologies that enables a company to provide the customer with a certain advantage’. In proportion, as the enterprise exists for longer and grows, the core competences are diluted and companies try everything to generate turnover. In depressed economic times, they then say ‘back to the core business’. However, this has become difficult to define. A review of the core competences is then necessary. The company obtains insight into the competences with which the company can distinguish itself with regard to the competition in the market. Besides establishing the core competences, the company obtains insight into non-critical business processes. These business processes are suitable for outsourcing to companies for which the activity is regarded as a core competence. This guarantees quality and the company is better able to focus on its own core competences.