Core Competence of Sharp Corporation Essay Example | Topics and Well Written Essays - 3000 words

middle Competence of Sharp Corporation - Essay ExampleFrom this paper it is clear that there were abundant literatures providing theoretical and empirical support justifying that competitive advantage is derived from imperfectly tradable, imperfectly substitutable and valuable assets. The idea of portfolio coming encouraging diversification into unrelated areas that flourished in 1960s and 1970s lost its enthusiasm to RBV approach advocating diversification into related areas. RBV approach also was critical of multi divisonalisation of a large company that led to corporate fragmentation and short-termism undermining the development of core competencies and innovations. Core competency exploitation led to vertical integration in large companies to achieve competitive advantage. But of late vertical disintegration is being attempt in the globalization tendencies which offer wide opportunities to delegate to external suppliers with highly specialized expertise resulting in more pro nounced core competency approach for the given company. As the paper highlights Hammel and Prahalad in their book Competing for the futureassert that companies should look forward to the share of future opportunity share rather than present-day(prenominal) market share. They say that successful enterprises will reshape their industries rather than themselves by building upon their unique core competencies without building upon current product lines and that this will check to creation of new competencies. They advocate new strategy which requires four approaches namelyunderstanding of the shape of future competition process by which to gauge tomorrows opportunities arouse the company from top-to-bottom to prepare for the future and overtaking the competitors and arrive at the future first without assuming undue risks.