Core competencies

Core competencies are those unique internal skills and knowledge sets that define an organization's competitive advantage &mdash; as seen by its customers. Core competencies are usually limited in number and are embodied in the organization’s products and services rather than being the actual products or services themselves.

For example, Microsoft’s core competencies are software design, development, and marketing. These are the capabilities that enable these companies to produce and sell their uniquely competitive products for the customers they serve.