Critical review from an Business Strategy Article Essay

Critical review from an Business Strategy Article - Essay Example Therefore, the concept of core competencies as an application strategy for businesses, require advanced focus and learning the trends and change within an industry, and then identifying one or a few areas of the changing trends that are likely to merge, then working towards producing a product that serves that exact merging point of need (Prahalad & Hamel, 80). Informed by the principle of competitiveness, the strategy of core competencies works on the basis of building a portfolio of competencies, at the expense of a portfolio of businesses, meaning that attaining competiveness for a business organization is no longer about building a chain of related business within an industry, through diversification, but analyzing the specific areas a business can have a competitive advantage, and then capitalizing on that area to build on the competitiveness (Prahalad & Hamel, 81). Nevertheless, while applying the strategy of core competencies, it is paramount that focusing on new areas of busi ness where others have not yet perceived opportunities should not relent, so that an organization can build a stable competitive platform, which makes it difficult for others in the same industry to compete. The main strengths of the article is that it demonstrates the major arguments through the application of real organizational examples, detailing the process of such organizational businesses, and showing how the core competencies strategy made an overall difference. This way, it becomes easy to understand the strategy advocated, since real life examples are applied. A better demonstration is when the information technology industry was evolving in the early 1980s, where GTE was the company poised to take the advantage of the opportunity... Informed by the principle of competitiveness, the strategy of core competencies works on the basis of building a portfolio of competencies, at the expense of a portfolio of businesses, meaning that attaining competiveness for a business organization is no longer about building a chain of related business within an industry, through diversification, but analyzing the specific areas a business can have a competitive advantage, and then capitalizing on that area to build on the competitiveness (Prahalad & Hamel, 81). Nevertheless, while applying the strategy of core competencies, it is paramount that focusing on new areas of business where others have not yet perceived opportunities should not relent, so that an organization can build a stable competitive platform, which makes it difficult for others in the same industry to compete. The main strengths of the article is that it demonstrates the major arguments through the application of real organizational examples, detailing the process of such organizational businesses, and showing how the core competencies strategy made an overall difference. This way, it becomes easy to understand the strategy advocated, since real life examples are applied. A better demonstration is when the information technology industry was evolving in the early 1980s, where GTE was the company poised to take the advantage of the opportunity and see significant growth in its size, sales and revenues, considering that it was already well established in the industry, as opposed to NEC, which was a relatively small company in the industry