A ‘world class’ company may have several core competencies or areas of excellence involving core processes, projectized work, low costs, state-of-the-art research and development, critical management abilities, specialized equipment, team effectiveness, competitive culture, technology/know-how, or distribution strengths.
Some ‘world class’ companies are well known for one exceptional core capability or process. For example, Daimler-Chrysler develops innovative autos; Wal-Mart has ultra efficient distribution, planning, and logistics; and Nordstrom offers exceptional customer service. Or, something as simple as pizza delivery. Pizza delivery, you say, no way! Well, the differentiating characteristic, value proposition, or core competency of Dominoes is pizza anytime and anywhere.
While companies may offer similar services, ‘world class’ companies develop core process competencies to offer them faster, better, and cheaper. Core competencies usually involve a small number of processes.
Core competencies may also involve services. For example, Ford Motor Company organized itself around four value-adding service processes: 1. fix the vehicle right the first time and on time; 2. support dealers so they can handle customers satisfactorily; 3. design vehicles for ease of service; and 4. develop service fixes quicker.