Discuss the Application of the Core Competence-Market Matrix

question 33

Essay

Discuss the application of the core competence-market matrix.
C. K. Prahalad advanced the core competence-market matrix, as a way to guide managerial decisions in regard to diversification strategies. The first task for managers is to identify their existing core competencies and understand the firm's current market situation. When applying an existing or new dimension to core competencies and markets, four quadrants emerge, each with distinct strategic implications.

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Definitions:

Money Economy

A system where goods and services are exchanged primarily through the medium of money, rather than through barter.

Intrinsic Power

The capability or influence derived from an individual's inherent qualities or position, not dependent on external factors.

Military Power

The capacity of a nation's armed forces to use force or the threat of force to control situations and achieve specific objectives, often influencing international relations.

Technology

The application of scientific knowledge for practical purposes, especially in industry.