In the Harvard Business Review article, “The core competence of the company,” authors CK Prahalad and Gary Hamel, the concept of core competence reached a settlement with NEC and GTE focus on core competencies focus on business rather than skills. The article went on to become the best-selling HBR reprint in history and led to a wave of consulting and academic work that core competence was the key to business success. The authors predicted a bright future for … Read more »

In the Harvard Business Review article, “The core competence of the company,” authors CK Prahalad and Gary Hamel, the concept of core competence reached a settlement with NEC and GTE focus on core competencies focus on business rather than skills. The article went on to become the best-selling HBR reprint in history and led to a wave of consulting and academic work that core competence was the key to business success. The authors predicted a bright future for NEC and other “competence-based” companies and potential obsolescence of GTE and other “business-based” company. The present case juxtaposes quotes from the article with a discussion of the development of NEC and GTE to 1999. It includes performance data on the two companies for a critical assessment (and catchy evaluation) of the core competence idea for the 10 years before the publication of the article and allowing 10 years after publication.
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Michael J. Enright,
Vincent Mak
Source: University of Hong Kong
27 pages.
Publication Date: Sep 23, 2002. Prod #: HKU213-PDF-ENG
Core competence of NEC and GTE HBR case solution