Topic > Essay on Mintzberg Strategy as a Decision Model

Prahalad and Gary Hamel point out that core competencies form the basis for an organization's competitive advantage, enabling it to introduce a variety of new products and services. Core competencies lead to core product development. Core products are not end-user products but the products that would be used to make a large number of end-user products. For example, Honda realized that its core competence lies in internal combustion engines, and therefore, its main product is the engines that it uses in all its products (cars, motorcycles, agricultural equipment). Therefore, motors are critical to focus the process. When the focus is on core competencies rather than the product itself, the organization is able to grow with technological change. For example, for a typewriter company, focusing on typewriters is an unwise decision because the typewriter as a technology has been outdated. As a result, the organization would also go out of business as its focus is the outcome of the business and not the core competency of the company. However, if the organization had recognized its core competency and focused on that, it would have survived the tide of