Sustainable Competitive Advantage with Core Competence : A Review

The potential of an organization's sustainable competitive advantage depends on the rareness and imitability of its resources and capabilities. The less imitable a competitive advantage is, the more cost disadvantage is faced by the competitor in imitating these competencies. Thus, core competence is an important source of sustained competitive advantage for corporate success and greater is its economic return. The literature has been reviewed for the sources of core competence, role of core competence for competitive advantage, and formulation of strategy with core competence and flexibility in a more focussed manner. The organizational learning, strategic flexibility, effective technology management, and people provide the important sources of core competence.