It began outsourcing manufacturing, and developing long-term relationships with suppliers to guarantee products that met Sony standards. Sony's core competencies are in product design and global marketing and distribution. Genentech offers another example. It is best in world at the applied research phases of certain types of biotechnology. Nor is Genentech very capable in the world of product distribution.
Core competencies have certain definable characteristics.
In determining where in the value chain your company is best in world, look to where the in-house intellect is highest. Second, and related, core competencies are defined as platforms and are therefore capable of evolving. Third, core competencies are limited in number. The best companies target perhaps two or three spots in the value chain where they are best in world. For Nike, it is the design and marketing of athletic footwear.