19 Feb

I often heard about these two terms: core competencies and competitive advantages. Of course, according to several books especially Strategic (Thompson, Porter, etc) they are explained as ‘bla.. bla.. bla’. But somehow lots of us still couldn’t differenciate them .. if I can say.. correctly. Last time when I met Dr. H, I asked this question to him. I know-lah, maybe my friends would say, “how come you asked such question (the fact was.. it was so simple according to some..)when you already know about them from books? For me, this question means everything.. simple but their effects towards our understanding bout business, even the life itself are actually so influencing. And so my lecturer explained to me (gee, thanks sir!).

Now my big question is that, we often relate them to corporate strategic plan. How about if we take it as a personal question to ourselves. What is actually our core competencies and competitive advantages of ourselves as a part of this big community of the world? What’s the difference? Has anybody wants to share his/her thinking about this?

Sis, do contribute your mind 🙂

1 Komentar

Ditulis oleh pada Februari 19, 2008 in Evy


One response to “WHAT’S THE DIFFERENCE?

  1. citi cantik :)

    Maret 5, 2008 at 2:35 am

    Your inquiry is very interesting, and as I’ve got a kind of “lecturer-instinct” myself (hehehe..) I think your Dr. H would have felt the same as I now, i.e. taking it as a compliment if anyone would care to ask any questions just for the sake of the “knowledge and the effort of achieving deeper competency” of it and not for other “ulterior motives” hehehe…
    (lho kok kata competency muncul lagi neh padahal itu yang ditanyain??hoho..)

    To quote your BIG question: “What is actually our core competencies and competitive advantages of ourselves as a part of this big community of the world? What’s the difference?”

    I have never read those books (or Gabans as you call them hahaha…) written by those experts you referred to. So theoretically I have no notion at all about what those big terms mean. But abstractly-thinking, I think the difference between those two terms lie in the essence of the terms.

    I think core competency is the “most basic competency” (or you can say the “first” from a series of competency) which must be achieved first before we can think about either developing it to other “bigger” or “more advanced” competency, or exploring for other related competencies which we can chain with that core competency (in order to make it work more effectively and more efficiently than if the core competency works alone by itself.)

    In a human being, core competency is similar to his basic instinctive capability (self-confidence VS low esteem, friendliness VS unfriendliness, social VS individualism, etc); his basic personality (being self-confident VS having low self-esteem, being friendly VS being unfriendly, being social VS being individualistic, etc); his basic advantages (wealth, status, environment of living, etc) which he was born with.

    Competitive advantage is a situation when a person is forced to “see the world as a reality”, meaning that he with all his “core competencies”, no matter how positive or how negative they could be, must face the rules of the world and thus he must optimize/adjust his core competencies to produce the best result in life. For example, X is friendly. The rule of the world states that a friendly person can quickly get friends/people who like him. But it also the rule of the world that states being too friendly to a stranger you’ve just met can sometimes be good and some other times be fatal (if that stranger happens to be a bad man) –> In this case, his friendliness (his “core competency”) is advised to be careful in applying it, meaning that he must always be friendly (and for X that thing is easy for he was born with the ability to be friendly with anyone) BUT at the same also be alert to possible threats in the environment.
    If X also has the basic instinct to always alert anytime anywhere, then we say that “being alert” is another “core competency” for X.
    But if X wasn’t born with the instinct of being always alert anytime anywhere, then he must learn hard to develop that instinct within himself until it could naturally be his other “core competency”.

    #1. Being friendly alone, X faces the advantage of winning friends easily, but at the same time among those “new friends he’s just won” there could be a cheater who in the end turns out to be able to successfully cheat him. X cry 😦

    #2. Being friendly AND alert, X faces the same scenario above and in the end X still smile happily 🙂
    –> I bet you could explain now how that could happen, right? 🙂

    I think scanerio #2 is how “competitive advantage” works. I think “competitive advantage” is sort of like another core competency we develop because we need to survive in the “real world” competition. (In X’s case, it’s the competition to NOT get cheated by people who seems “friendly” to him. Who knows, maybe in the end X smiles because he could make that cheater get back to the right path and thus still be X’s real true good friend 🙂

    Hugs, citi 🙂


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