Core competence refers to the primary, specialised area of expertise that is fundamental to a company’s business model and critical to its success in the marketplace. These core competencies are the key strengths and capabilities that differentiate an organisation from its competitors and provide a distinct competitive advantage. The defining characteristics of core competencies are

Uniqueness: Core competencies are unique to the company and set it apart from competitors in the industry. They are the things that the company does exceptionally well and that competitors find difficult to replicate or match.

Transferability: These core strengths can be leveraged and applied across multiple products, services and even new markets, allowing the company to diversify and expand its offerings.

Inimitability: Core competencies are difficult for competitors to imitate or reproduce because they are often built up over time through complex combinations of the company’s resources, processes and organisational learning. This ‘stickiness’ provides a sustainable competitive advantage.