Core Capabilities


Thesisstatement: Companies core capabilities rely mostly on their corecompetencies.


Corecapability is the distinct critical elements required to achieve anygoal. For example, core capabilities of various companies includemass care services, planning, economy recovery, and operationalcommunication (Campbell,2013).

Wal-martuses core competences to boost its capabilities. Core competenciesare what the company does best. For example, Wal-Mart focuses more onlowering of its operating costs. The Wal-Marts cost advantage allowsretailer to price goods far lower than the most competitors. The corecompetencies are due to the company’s ability to generate a largesales volume. The size allows the company to more of remainingprofitable and with low-profit margin. In addition, the corecompetence of the Wal-Mart is logistics. For instance, they buy traincars that are full of products and tend to move it where there is aneed. They can even go further o intercept a shipment to reroute to aplace with a shortage (Schoemaker,2012).

Rothaermel(2013) reveals that, applecore competencies entail innovative design and technology. They havea motto of ‘Thinking Differently’. They work on deliveringproducts that attract the ready market. For instance, the Macintoshwas the first affordable computer in the market in 1984 with agraphical user interface (GUI). Similarly, today i-phone tends tochallenge most phones in the market. It has features such as portabledigital media and GPS navigator that woos customers. Apple does notonly woo consumers but also changes the way people think aboutconsumer electronics.

Toyotatends to be the second largest maker of automobiles. They are famousin the Japan’s multinational corporation. Some of their productsinclude buses, trucks, and robots. One of their core capabilities isthe brand management. They have strived to ensure that the brandremains popular even on countries where the cars are not common meansof transport. Their marketing strategy bases most on the brandingmanagement (Rothaermel,2013).Products such as the production and distribution of drinks shouldemploy these skills to achieve their goals. They should work on thebrand management, cost advantages, and innovation of technology.


Campbell,A. (2013). Building : The Roles of CorporateHeadquarters. TowardsOrganizational Knowledge: The Pioneering Work of Ikujiro Nonaka,221.

Rothaermel,F. T. (2013). StrategicManagement: Concepts.McGraw-Hill Irwin.

Schoemaker,P. J. (2012). How to Link Strategic Vision to .Sloan Management.