Core Competence of Sharp Corporation Essay Example | Topics and Well Written Essays - 3000 words

Core competency of Sharp Corporation - Essay ExampleFrom this paper it is clear that there were abundant literatures providing theoretical and empirical support justifying that competitive advantage is derived from imperfectly tradable, imperfectly substitutable and valuable assets. The idea of portfolio approach encourage diversification into un colligate areas that flourished in 1960s and 1970s lost its fervor to RBV approach advocating diversification into related areas. RBV approach also was critical of multi divisonalisation of a large company that led to corporate fragmentation and short-termism undermining the education of affectionateness competencies and innovations. Core competency exploitation led to vertical integration in large companies to get competitive advantage. But of late vertical disintegration is being attempted in the globalization tendencies which strait wide opportunities to delegate to external suppliers with highly specialized expertise resulting in mo re pronounced core competency approach for the given company. As the paper highlights Hammel and Prahalad in their book Competing for the time to comeassert that companies should flavor forward to the share of proximo opportunity share rather than current market share. They say that winning enterprises will reshape their industries rather than themselves by building upon their unique core competencies without building upon current overlap lines and that this will lead to creation of new competencies. They advocate new strategy which requires four approaches namelyunderstanding of the shape of future competition process by which to gauge tomorrows opportunities energizing the company from top-to-bottom to prepare for the future and overtaking the competitors and arrive at the future first without assuming undue risks.