What are an organisation's core competences?

An organisation's core competences refer to the unique capabilities or strengths that enable it to achieve its mission effectively and differentiate itself from competitors. These are not merely resources but rather the critical functional capabilities that embed the skills and knowledge harnessed through time, providing a competitive advantage in the market.

For example, an organisation's ability to innovate product design, maintain superior customer service, or cultivate strong supplier relationships can all be considered core competences. These capabilities allow an organisation to perform better than its rivals and meet the needs of its customers in a way that is unique and valuable.

In contrast, financial resources, market share statistics, and brand recognition, while important, do not directly reflect the intrinsic abilities or competencies of the organisation. Financial resources could be a result of management decisions but don't inherently define what the organisation is good at. Market share statistics provide a snapshot of competitive standing but do not explain the abilities that underlie that standing. Brand recognition, although valuable, primarily reflects perception rather than the actual capabilities that contribute to organisational success. Thus, focusing on functional capabilities provides a deeper understanding of what drives the organisation forward and sustains its mission.