Key Premises Build worldwide leadership in a class of product functionality (e.g, microprocessor controls) that can apply to multiple products Build a maximum of five or six of these “core competencies” Protect core competencies when making key strategic decisions: resource allocation alliances outsourcing Core competencies are collective learning in the organization 1. How to coordinate diverse production skills and multiple streams of technology e.g., Casci harmonizing know-how in miniaturization, microprocessor design, material science, and ultrathin precision casing to produce an array of products such as miniature card calculators, pocket TVs and digital watches
2. How to organize work and deliver value e.g. 3M’s competencies in substrates, coatings, and adhesives has allowed them to bring forth such diverse products as Post-It notes, magnetic tape, diskettes, photographic film, and adhesives