CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment
Rohan Pharma has a research team with deep expertise in drug formulation. This expertise lets it launch generic and speciality products faster than rivals, is hard for others to copy, and can be applied across several product lines. According to Prahalad and Hamel, what is this best described as?
This is a core competence. It is a collective skill that spans several product lines, contributes noticeably to customer value and is difficult for competitors to imitate. A threshold resource, by contrast, is merely the minimum needed to compete in the market.
- AA threshold resource
- BA core competenceCorrect
- CA tangible asset
- DA strategic business unit
Explanation
Core competence is a collective learning or skill that gives access to many markets, adds perceived customer value and is hard to imitate. The described expertise meets these tests. A threshold resource is only what is needed to compete at all, not to excel.
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