The Core Competencies of Daimler Chrysler

The Core Competencies Of Daimler Chrysler

INTRODUCTION: Theory and Principles

In 2002 companies will continue to grow and become market leaders only if there ability to examine the companies core competencies by identifying, cultivating, and exploiting these competencies continues now and beyond into the future. Failure to do so could be catastrophic for even the most powerful of companies, not in the short run but over time competitors will get ahead and the technology gap is so significant in core competencies that these corporations will never be able to catch up. That is why as we progress into the 21st century core competencies of a company is what is going to keep the company competitive and ahead of the rest, and on the brink of technological breakthroughs in their specified area. In this new-economy world, where companies compete on the basis of core competencies and relationships, human resources (meaning a skilled and knowledgeable workforce) will emerge as a key source of competitive advantage. Core competencies, by definition, are "knowledge sets and technical skill sets," (Vicere, 2001) which is "the collective learning of the company as a whole" (Prahalad & Hamel, 1990). Thus, core competencies of a company will only get stronger as application or the sharing of ideas and or poaching of personnel enhances them. Just as easily "core competencies can also diminish if they are not being applied or shared within a company relating to Strategic Business Units (SBU)" (Kotler, Armstrong, Brown & Adam, 1998). Strategic alliances between companies is emerging, and this encompasses the merging of two companies core competencies and producing core competence, core products and end products which no other company can rival, thus producing technological breakthroughs which previously seemed impossible.

The goal of core competencies is "to build world leadership in design and development of a particular class of product functionality"