Core Competencies

Businesses have things that they are really good at. They are the business' core competencies.
It is something unique that a business can do well, strategically.
Core competencies are based on three different things, and if they can answer the following questions, they are a core competency:

• How do they provide access to a wide range of markets?
• How does it provide consumer benefits?
• Is it difficult to imitate?

Criticisms of Core Competencies 

• Businesses may outsource too many things, resulting in a loss of knowledge and skill.
• Businesses have to trust the outsourcers to produce high-quality products.
• Businesses lose some control over the business.
• Forces the business to avoid taking major risks.
• Outsourcing allows poor working practices.