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1. SM-4
Unit-1
The Curious Case of Core Competency

2. The Amir Khan Phenomenon

3. But What Happened To LSC ????

4. The Kodak Story : Share Moments Share Life

5. The Kodak Story
• Kodak was founded in the late 1880s, became a giant in the
photography industry in the 1970s and filed for bankruptcy in 2012.
• For almost a hundred years, Kodak was at the forefront of
photography with dozens of innovations and inventions, making this
art accessible to the consumer.

6. The Kodak Story
1975 — Steve Sasson, an engineer at Kodak invented the digital camera.
1976 — Kodak became so dominant, they practically pushed their competitors off
the market –
Cameras: 85% market share, Film: 90% market share
1981 — Sales top $10 billion.
The late 1980s — The rise of digital photography with analogue cameras sales
decreasing and digital camera sales increasing.
1984 — Customers switched from Kodak to Fuji because the Japanese colour film
was 20% cheaper than Kodak’s.
1991- Kodak’s first digital camera.
1991–2011- Kodak released various digital products, but sales kept falling.
2012 — Kodak filed for bankruptcy

7. Good Old Days !!!

8. The Kodak Story ….
• The Industry’s Turning Point — Phase 1 — Photography Going Digital
• The Industry’s Turning Point — Phase 2 — Photography Going from
Digital to Social
•

9. The Kodak Story…
• Many years before Facebook, Kodak made a surprise business move
and acquired a photo-sharing site called Ofoto in
2001. Unfortunately, instead of going the Instagram way, Kodak used
Ofoto to try to get more people to print digital images.
• In 2012, when Kodak was filing for bankruptcy, Facebook was
acquiring Instagram, the new hot photo-sharing social network for $1
billion.

10. The Kodak Story….
• What you can learn from Kodak’s demise:
• Transform the way you view strategy, business models and innovation
management;
• Be prepared to shift from protecting your company’s competitive
advantages to making change radical and revolutionary;
• To avoid complacency ensure that your innovators have a voice with
enough volume to be heard (and listened to) at the top;
• Adopt agility as an organisational strategy for development.

11. So…. Revisiting The Concept of Core
Competency
A core competency is a concept in
management theory introduced by C. K.
Prahalad and Gary Hamel.
It can be defined as "a harmonized
combination of multiple resources and
skills that distinguish a firm in the
marketplace" and therefore are the
foundation of companies'
competitiveness.

12. Four Elements of Core Competencies
The Core Competence Model focuses on a combination of specific,
collaborative, integrated and applied knowledge, skills and attitude.

13. Three Conditions for qualifying as CC
#1 It Should Provide superior value or benefits to the consumer
#2 It should be difficult for competitor to replicate or imitate it
#3 It should be rare

14. Think and Explain
Apple :
Meta :
Walmart :
Uber :
Byju’s :
Domino’s :

15. What Do You Think ? ( Founded in 1903)

16. In India

17. • In 1903, out of a small shed in Milwaukee,
Wisconsin, four young men lit a cultural
wildfire that would grow and spread across
geographies and generations.
• Their innovation and imagination for what was
possible on two wheels sparked a transportation
revolution and lifestyle that would make Harley-
Davidson the most desirable motorcycle
brand in the world.
• Today, we continue to define motorcycle culture
and lifestyle, evoking soul-stirring
emotion reflected in every product and
experience we deliver - like we have for well over a
century and will for generations to come.

18. On A Mission
OUR MISSION
More than building machines, we
stand for the timeless pursuit of
adventure. Freedom for the soul
OUR VISION
Building our legend
and leading our
industry through
innovation,
evolution and
emotion

19. The Strategic Plan – The Hardwire
• The Hardwire is Harley-Davidson’s 2021-2025 strategic plan
guided by our mission and vision.
• Our plan is targeting long-term profitable growth through
focused efforts that extend and strengthen our brand and drive
value for all stakeholders.
• The Hardwire is designed to enhance the desirability of Harley-
Davidson and fuel our unique lifestyle brand. Our efforts will
unlock the potential of the most important products, segments
and geographies.
• This includes growth in our complementary businesses and
selective expansion into segments where we have a path to
leadership.

20. Culture
• OUR CULTURE: H-D#1
• We are redefining our culture to reignite the company’s soul and
spirit.
• We are calling our cultural journey “H-D#1” represented by our
recognizable #1 logo, introduced in 1969 to celebrate a National
Racing Championship.
• The #1 logo is uniquely ours - an iconic symbol of winning and the
hard work it takes to get there.
• Our employees and dealers are rallying around ten H-D#1
leadership principles to become a winning, high-performing company

21. THE H-D#1 LEADERSHIP PRINCIPLES
• Communication - Communicate with purpose, structure, facts and inspiration
• Agility - Accelerate, innovate and thrive in a rapidly changing environment
• Impact - Focus on impact, not process, and be outcome driven
• Simplicity - Pursue the simplest path to achieve each outcome
• Speed - Don’t let perfection get in the way of process and pace
• Culture - Be fair, honest, positive and creative. Strive to win and have fun.
• Courage -Take risks and go against the norm
• Judgment -Think strategically and make informed decisions
• Focus - Focus on a short list of meaningful opportunities that build desirability
• Lean - Maximize impact with limited resources

22. Core Competencies
Quality & Styling
Innovation Resource from
Suppliers ,Employees,
Management
Company Culture
Evolution
Emotional Connect with Product
R&D

23. Exercise – The VRIO Framework

24. Undertake A Vrio Analysis For IKEA in India

25. Real Home Story….

26. The Bigger Story

27. To Conclude …….The Curious Case
• It’s difficult to acquire a core competence.
• Even more difficult to identify the mix that leads to CC
• But once identified …….
• It is the cause of competitive advantage
• So Core Competence should be at the heart of Strategy
• However to make it a source of Sustained Competitive Strategy ,
organizations need also to be agile, improving, innovating, take
appropriate risks or in short be learning organizations.