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Core competencies refer to those functions that an organization does as well as, or better than, any other organization in the world.
A company's competitive edge in the market is derived from its core capabilities, which set it apart from its rivals. Instead of tangible or monetary assets, a company's collection of abilities or knowledge in a particular field is typically referred to as its core competency.
The three basic categories of competencies are core, cross-functional, and functional. There is a hierarchy even though all are significant. A notion in management theory known as a core competency was first presented by C. K. Prahalad & Gary Hamel. The basis of a company's competitiveness, it may be described as "a coordinated mix of diverse resources and talents that distinguish a firm in the marketplace."
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