Traditionally sources of competitive advantages were labor costs, capital costs and raw materials. A global strategy easily overcomes these advantages so we have to look for other sources of competitive advantage. Idea of a bundle of core competencies that can be used to create an exclusive market position.
Core competencies are a value creating system.
Inputs to a firms production process. Capital Equipment, Employee skill, patents, finance, talented managers. 1993 study of 847 CEOs -mentioned 30 different intangible assets. Most important was Reputation for Quality. Capabilities Ability to employ integrated resources.