Management of Innovation 301
Digital Report Assessment
3.2.4 Core Competencies
Core competencies is “a combination of unique technology of a company, skills, and
operating procedures.” It is the outcome of a long period of evolution, a combination to meet
customer needs (Hamel and Prahalad 1990 qouted in Chen et al 2011, 3). In another words,
the firm will accumulate the knowledge and then after that they will use the knowledge to
create some products. The firm’s core competencies are relevant to the roots of a tree, with
core products represent the trunk and final end products are flowers, fruits and leaves (Refer
Exhibit 3).
The rate of imitation of core competencies are very crucial to a firm as it can
determine if the firm has the ability to sustain their core competency and use the core
competency to generate some profits. An excellent example of the firm which can avoid their
core competency to be copied is 3M. 3M are able to develop a wide range of products from
coating to adhesives. These type of firm can be placed of the upper right corner of the matrix
(Refer Exhibit 4). As GroupMap imitability and core is high, therefore GroupMap can earn
long-term profits.
3.3 Collaboration Strategies
3.3.1 Strategic alliance
Strategic alliance is “an agreement between two or more partners to share knowledge or
resources, which could be beneficial to all parties involved” (Trott 2012, 234). According to
Trott (2012, 239), there are eight types of strategic alliance which include licensing, supplier
relations, outsourcing, joint venture, collaboration, Research and Development (R&D)
consortia, industry clusters and innovation networks. Currently Jeremy has collaboration with
leadership WA, consulting firms, other collaborations tool companies, online meeting tool
companies and universities.
3.3.2 Collaboration with non-joint ventures
The most popular collaboration is with non-joint venture, which is “not a legal entity
and more flexible in terms of rules and regulation between the alliances” (Trott 2012, 241).
Collaboration with universities can help in chance the skills and strengthen their positions in
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