Discuss the Application of the Core Competence-Market Matrix

Discuss the application of the core competence-market matrix.
C. K. Prahalad advanced the core competence-market matrix, as a way to guide managerial decisions in regard to diversification strategies. The first task for managers is to identify their existing core competencies and understand the firm's current market situation. When applying an existing or new dimension to core competencies and markets, four quadrants emerge, each with distinct strategic implications.