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Capitalize on Your Core
Competencies
Your company's
core competencies – things
that you can do
better than your competitors –
can often be extended to
products or markets beyond those
in which they were originally
developed. Such extensions
represent excellent
opportunities for
diversification.
Any core competence that meets
the following three requirements
provides a viable basis for your
corporation to create or
strengthen a new strategic
business unit (SBU)
①
The core competence must
translate into a meaningful
competitive advantage.
②
The new business unit must have
enough similarity to existing
businesses to benefit from your
corporation's core competencies.
③
The bundle of competencies
should be difficult for
competition to imitate.
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