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A Macat Analysis of C. K. Prahalad and Gary Hamel's The Core Competence of the Corporation

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“The Core Competence of the Corporation” challenged and redefined traditional concepts of management strategy in a market that was growing increasingly global and competitive.

Business scholars C. K. Prahalad and Gary Hamel base their 1990 argument for a strategy change on a comparison of case studies. They note that some corporations are adept at inventing new markets, quickly entering emerging markets, and shifting patterns of customer choice in established markets. The authors suggest that the ability to identify core competencies allows companies to develop new products quickly, and they challenge managers to emulate these best practices, offering a blueprint of how to accomplish this.

One of the most reprinted articles in the history of the Harvard Business Review, “The Core Competence of the Corporation” has been highly influential in the ongoing debate about business strategy and corporate competitiveness, topics of critical importance to the global economy. The article won the authors the McKinsey Award, given to outstanding articles published in the Harvard Business Review.

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