Core competencies are the essence of what a company does well.  A business uses its core competencies to make and develop products, goods and services according to its company mission.  Core competencies are not easily replicated.  They usually come from years of experience and are stored in the collective knowledge base of the company and its employees. The difficulty in replicating core competencies provides a competitive advantage to the company that has them.  The company uses these core competencies to create value for customers, knowing that competitors will have a hard time entering that same market.  Also, a core competency allows a business to expand into other markets.  For instance, Bubbly Fresh Soda Company’s core competency is manufacturing quality soda products.  But another core competency is its ability to market those beverages.  Bubbly Fresh can use these core competencies to expand its beverage line to other types of beverages like juices, bottled water and sports drinks. Often, a founder who has a core competency in a very specialized area, such as programming a unique computer software program, forms a start-up company to capitalize on this skill.  The key for this newly formed company is to focus and develop its initial core competency, develop new ones that supplement the original core competency and then build a reputation, brand name and customer base.  The company can use these developed core competencies to sustain growth as well as distinguish itself from its competitors.