The core competence ideal is considered as one of the vital ideals in the business world. The ideal has led to the success of the current wave of outsourcing. Companies have realized that it is important to concentrate on what they are best at and outsource the rest of the services from other companies. Core competence is an important ideal in improving competition in the market as a company is able to utilize the open opportunities that are available. Additionally, a brand is able to develop on the key areas which matter to the customers.
Businesses mostly have a common understanding that aligns with the demands and strategic objectives set forward which can be termed as business or strategic architecture. Maintaining the business architecture requires expertise and focus on the business and what it does in the market. Outsourcing helps businesses concentrate on the areas in which they have specialized. The business will be able to maintain its core competences through the employees who will be able to remain glued to the strategies and objectives as set in the business architecture. Technology has helped companies come up with different ways to concentrate their focus on particular fields where other businesses can focus and outsource the services at subsidized costs.
Underinvesting in core competencies in a business can affect the growth and development of a business in the market. Businesses are likely to diverge from their main focus which results to production of low quality goods and services to the customers in the long. Consequently, a business loses its competitive advantage in the market. It is recommended that businesses develop key competences necessary for both corporate and individual employee specialization and growth. Businesses that adapt to the ideal of core competences are likely to growth and gain a better competitive advantage in the market since they focus on giving the customers best products and services.