The competencies, i.e. skills, talents, technologies that have been identified as fundamental for the success of the Company and Business, ones that are being heavily invested in through education, training and recruitment. These competencies would be protected against outsourcing decisions as they provide the competitive advantage require for success in their chosen Markets. Core competencies lead to the development of core products. Core Products are not sold to end-users; they are used to build a large number of end user products.
Without core competencies multi-nationals and large concerns become just a collection of discrete businesses. Core competencies become the glue that holds the various units together and thereby generates its aligned portfolio.