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GSM Lecture 8Management > Global Strategic Management > Globalisation > Alliances > R&D alliances > external/internal sources > Core competences
Core competencesBelow is an image showing the types of R&D decisions taken by managers based on their perceptions of the firm's core competences (Fig.1).
As can be seen, non-core components can be outsourced, allowing the in-house specialists to concentrate on more important activities, such as system design, which more directly affects the strategy of the company. Alliances are reserved for middle-important activities, such as operating systems and display technologies, which can develop core competences and enhance the system design and control systems software developed by the in-house team.
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