A company or firm for me is like bulb of onion that it is covered with different layers that protects it inner membrane. Each layer is essential in completing the formation of an onion. The outer layers of the onion are the front runners of the company which deals with the promotion and immediate services needed by the clients. They are the ones that mostly get the physically challenging jobs. If you can observe the inner layer of the onion are more fragile and moist and protected with another thick layer. In the company this can be the people that need to think of the strategies that will help the company to grow and survive. Their creative juices must be well managed because these can be the key in making the success of their objective and goals. The introduction might be a bit crazy due to the comparison that I made. Well, that could be the result of my exposure to a company that is truly keeping their actions into right perspectives. The call center firm that once I got employed with gave me a lot of realization in making his blog about core competence of the corporation. That made it suitable to be the subject for this blog entry.
The Core Competence of the Corporation is part of the key paper of C.K.Prahalad and Gary Hamel who argued that "Core Competences" are some of the most important sources of uniqueness. These are the things that a company can do uniquely well, and that no-one else can copy quickly enough to affect competition. The main point of the argument is that the size and financial component of a company is never an assurance of its long term existence in the industry. Their strengths and weaknesses must be fully recognized to know the areas that need to be improved and maintained to survive. Let us use the 3 indicators in determining if the company is core competence.
1. Relevance: Firstly, the competence must give your customer something that strongly influences him or her to choose your product or service. If it does not, then it has no effect on your competitive position and is not a core competence.
The company deals with the technical service of a popular brand of networking device over the phone. During the first year of my deployment I haven’t experience too much pressure from the company until such time that other competing brand also engaged on the same strategy to establish call centers to provide technical service. Our tact site couldn’t feel the competition because we are just of the job description that we have. But we can feel the pressure on how to execute the strategies of the company to outwit others. Our main goal that time is to sneak on other company’s plan for us to make our ow2n deal that is favourable to the customers. We went through free shipping and free follow up on the products that we troubleshot just to get the ultimate customer satisfaction that we want. And we were successful at that time.
2. Difficulty of Imitation: Secondly, the core competence should be difficult to imitate. This allows you to provide products that are better than those of your competition. And because you're continually working to improve these skills, means that you can sustain its competitive position.
I must say that the product that we have doesn’t need extravagant advertisement because t is already a household for Americans who wants to establish a network in their home. Aside from the fact that it’s cheap yet has a quality of standard it also goes with the latest trend on its functionality and design. That is why the company focuses on the marketing plan just to maintain or increase the number of clients.
3. Breadth of Application: Thirdly, it should be something that opens up a good number of potential markets. If it only opens up a few small, niche markets, then success in these markets will not be enough to sustain significant growth.
The recession became the ultimate challenge at that time that even the competitors are also having difficulties in coping up with the scenario. So the company ventured to anther services not related to the brand but still going to attract customers and that is the support of third party concerns. The main goal of that move is to not waste any calls that are either misrouted to the tact site or the concerned is already beyond our support. And it did prosper.
Since the core competency of the company already tested, there are also factors that made the company failed.
1. No commonly accepted view
In a company, even though they do have managers and subordinates it is very important to collect ideas to come up with one brilliant strategy. The company made it sure that every step must be fully monitored because of the tendency that if the strategy fails a big amount of money will be lost.
2. No wide communications
The company has a lot of tact sites not just in the Philippines but in the entire world. That is why the line of communication between concerned sites must be fully open even if these sites also compete with each other. The number one competitor of the Philippines in this field is India because they do have low wages with less policy.
3. Senior line managers were too "Individualistic”
The old school type of management is that the voice of everyone comes from one person only that is why the head of the company stands out in decision making. But since knowledge is on every one of us, the subordinates are now given the opportunity to speak out and give their opinions.
4. Decentralization
Once each department or division in the company are giving clear tasks and targets there’s no way that the company will crash down. Maintaining the balance in socializing with colleagues and giving them the spot of proving themselves are the keys in bring out the potential of the company and looking for probable solutions for any problems.
With this quick study about core competence in the company made me realized about the importance of doing check and balance is till effective. There are things that can be broadcasted to the public and a lot to stay as a trade secret to prevent others to imitate your own strategies.