Criteria for Core Competencies. Management Assignment

Criteria for Core Competencies
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What four criteria must resources/­capabilities satisfy to become core competencies? Why is it important for firms to use these criteria to evaluate their resources/­capabilities? Choose a company that you are familiar with (Kuwaiti company or famous company like apple or ikea). Apply these four criteria on five resources/­capabilities of this company. Explain your findings.
Based on Wilkinson (2013), the four criteria that firms should satisfy to ensure that resources or capabilities meet the core competencies are: (1) Valuable; (2) Rare; (3) Costly to imitate; (4) Non-substitutable. Core competencies are important because they can serve as advantageous points in the improvement of the company’s performance in totality. The set of criteria mentioned can evaluate these core competencies so that the firm can go beyond the other rival companies within the same industry. Furthermore, these core competencies will help the company protect its products against copying and reproduction by other competitors that may cause them to experience bankruptcy.
The chosen company is IKEA with its capability: in providing products at low cost; in providing stylish and desirable products even if the price is relatively lower than the competing brands; in providing worthwhile shopping experiences for the customers; in possessing good inventory system; in expanding its market; and in its independence from the stock market or investors.
In terms of value, IKEA is capable of providing products at low cost. However, given the low cost of the product, they can still provide stylish and desirable items for the consumers. Also, the company can ensure a very worthwhile shopping experience for their customers. They also have good inventory system that allows the clients and customers to immediately take their items home from IKEA. Lastly, the company is capable of expanding its market globally. The company gains the essential knowledge and information for them to increase or expand their market.
In terms of rarity, IKEA’s capability to produce products that are stylish yet wi...