Apart from this, this theory help to implement planned changed by adapting diversification but the market is changing very constantly and hence, changes should be adopted with proper training and communication techniques. The major task of the management to implement this theory is to frame an organization which is potential of inventing products with its unique features but this is quite difficult as well. This needs a proper radical change in the management and organization’s readiness to adapt change without any kind of major difficulty. According to this theory, all the companies need to analyze the cause of competitive decline. This is the main reason that NEC was able to become stronger player globally as it realized the importance of competencies which are important to serve the customer and satisfy their needs (Boyatzis, 2006).
The top management of NEC determined that the major core product of company can be semi conductors and started building competencies at low cost by providing proper training to its employees regularly. This scenario proves that a company can touches the heights of success if it is capable enough to recognize its core product with effective competencies. This is the main reason that competencies are contemplated as the major root of competitiveness. It is also true that physical assets diminish as one use them with the passage of time but core competencies do not end with its use as they expand when they are implemented and applied in a firm. On the other hand, a company may fail even after it is making the use of core competencies if its management and leadership skills are not strong (Boyatzis, 2006).