External Analysis and Core Competencies

Subject: Technology
Type: Informative Essay
Pages: 1
Word count: 307
Topics: Computer Science, Business Ethics, Innovation, Marketing

Core competencies can be defined as a company’s unique ability that gives it a competitive advantage over rivals in the field of concern (Business Dictionary, 2017).  They are definitive capabilities that are not easy to imitate and thus they serve to distinguish an enterprise from the competition. Core competencies differentiate an organization strategically and thus they define an organizations structure through which value is delivered to customers. Microsoft’s core competencies include technological innovation which is applied to bring value to business and personal users through efficient IT services that deliver on business goals (Liquori, 2011). In this essay, these competencies will be discussed as well as their impact on the strategic direction of the company.

In addition to being a market leader in technological innovation, Microsoft also has organizational efficiency which is illustrated through the seven main divisions of products offered. These include Windows, Servers, Games and their consoles, MSN, Windows mobile, Solutions for Business and Tools for developers (Liquori, 2011). Through this, the company has the unique ability to deliver the right services at the right time.

Through technological innovation the company supplies applications for Information Technology as well as related infrastructure for operations supporting businesses. This enables the dissolution of redundancies for business Information systems and efficiency is increased through faster response times.

Microsoft has emerged as a strong brand in that, it is trusted by customers and stakeholders within its industry and their products are difficult to replicate. In addition, the organization has developed an extensive network of partners through which the competencies from the corporation are showcased to the world.

Conclusively, Microsoft’s core competencies include technological innovation, organizational efficiency, strong brand and image as well as a strong partner network. These produce unique abilities through which the company delivers quality IT support to the core functions of business.

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  1. Business Dictionary (2017). Core Competencies. Retrieved from<http://www.businessdictionary.com/definition/core-competencies.html>
  2. Liquori, T. (2011). Core Competencies Microsoft Corporation. Retrieved from<http://www.thomasliquori.me/Word%20Files/Microsoft_Corporation.htm#_Toc295758207>
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