Dynamics of Core Competencies in Leading Multinational Companies

T A B L E 2. Companies Competencies By Type (continued) Technological Know-How
Strong technical research and engineering in Japan.

Firm
Okidata

Reliable Process

Close Relationship with External Parties
Close relationship with distributors obtains customer information feedback and provides market access.

Lockheed Martin

Systems engineering and aerospace, composites, and microelectronics expertise.

Record of mission success. Reach to access resources anywhere to execute on time and on budget projects that have never been done before. Culture of cost reduction manifested in its

management, structure, operations, and design of cans. Ability to transfer its cost reduction practices to over 20 acquisitions. Seamless coordination between research, development, and

technical services. A reliable system of providing offshore outsourcing of software development using the large, low-cost, computer-skilled professionals in India. Reliability of its furnaces,

arising from its integration at the factory instead of customer location, its large installed base, and round-the-clock global servicing.

To satisfy its customers’ needs, the firm has also developed closer relationships with suppliers, domestically and internationally Leverages its close customer relationship across plastic and

metal packaging, filling machinery domestically and internationally

Crown, Cork, and Seal

Tooling investment and knowhow to cut metal and reduce material and handling of cans.

National Starch and Chemicals HCL

Expertise in both natural and synthetic polymers.

Close relationship with customers leads to customer-driven R&D Close relationships with clients help to develop customized computer hardware and software solutions and provide servicing. Its

relationship with vendors generates ideas and components that it integrates into its new products.

Expertise in UNIX based software systems where it was an early entrant before it became the global industry standard.

Inductotherm

Induction melting technology.

expertise in either natural polymers or synthetic polymers. The combination of expertise in natural and synthetic polymers gives National Starch a larger toolbox to work on the diverse needs

of its industrial customers. For example, one of its customers is a manufacturer of body lotions that desired a certain feel in a new lotion. National Starch was able to meet this customer’s

need by drawing on its expertise in both kinds of polymers. The global context provides various opportunities for developing and leveraging superior technological know-how. The special

capabilities of diverse countries can be sourced in developing technological know-how. Larger international sales can fund and amortize greater R&D expenditures.^ Superior technological

know-how gives foreign firms a lever to enter foreign markets and

CALIFORNIA MANAGEMENT REVIEW VOL 40, NO. 4 SUMMER 1998