"Your core competence assumptions must be accurate in order to build a robust and executable strategy" - Avinash Bhandari
A typical strategy development exercise is preceded with a SWOT ( strength, weakness, opportunity and threats ) exercise. However, many companies are not clear as to what their core competence is and therefore build the strategy on a false assumption of core competence. If the assumed core competence does not turn out to be a real core competence during execution, it could prove fatal for the company. If strategy execution and success depended on these non-existent capabilities, the company would certainly find itself in a troubled competitive position. On the other hand, if the strategy is built on clear understanding of distinctive capabilities / strengths / core competence, it can lead to superior strategy execution.
Business leaders must therefore spend the necessary time in introspecting and understanding their company’s core competence ( activities which it can do substantially better than the competition ) and then build a strategy based on them. This will dramatically improve their chances of successful strategy execution.