Strategy and competence in firms

This article discusses the relationships between competences and strategies in firms. The competences of firms are normally their most basic resource and, as opportunities for winning on technological leadership are diminishing; a firm's capacity to develop and use its competences are vital to its competitive advantage. Competences must be constantly adjusted for relevance. Kjell Grønhaug and Odd Nordhaug discuss firms' core competences, their competence requirements and gaps. They suggest a way of filling such gaps in a stepwise manner.