Abstract It is possible to conceive of a firm as a portfolio of core competencies on one hand, and encompassing disciplines on the other, rather than as a portfolio of product–market entities (Prahalad and Hamel, 1990). As technology bundles, core competencies make a critical contribution to the unique functionality of a range of end-products. An example is Honda’s expertise in powertrains, which is applied to products as diverse as automobiles, motorcycles, generators, and lawn mowers. Encompassing disciplines include total quality control, just-in-time manufacturing systems, value engineering, flexible manufacturing systems, accelerated product development, and total customer service.
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