*--Explain the concept of core stiffness. Do long-standing organizations inevitably have difficulty avoiding the problem? Use examples from the automotive industry --*Core competencies are capabilities that provide a source of competitive advantage for a company over its competitors (Hanson, 2008). These capabilities must include the use of services or resources that are valuable, rare, non-substitutable, and costly to imitate. Strategic utilization of capabilities will be a core competency, which brings importance or valuable asset, also known as core competency for a business. Depending on the sector, competitor environment, general environment such as demographic, socio-cultural, economic, political/legal would vary. Any company that finds its flagship business would have a strong market position for its business. This combination and harmonization of multiple abilities makes skills difficult to imitate. Once the company has established the core competencies that can be well differentiated from other companies and uses them well, it is likely to make a profit and eventually find itself in a large market. Possible examples of core competencies are Wal-Mart in inventory management, Honda in dealer management and product fulfillment, and Dell's distribution system. Unfortunately, many basic skills don't seem to last forever. Over time, core competencies become vulnerable to changes in the overall industry environment. Companies that do not recognize or are indifferent to changes, or refuse to change, in their myopia are likely to suffer financially or in any other area in the near or not so long future. Core rigidity can be explained as "the flip side of the coin, the dark side of core capabilities is revealed due to external events when new competitors find a better way to serve the company's customers, when new technologies emerge or when political or social events change the terrain” (Leonard-Barton, ND). To be able to overcome capabilities that turn into fundamental rigidity, management must look for innovative ways. But sometimes it is not easy to carry out the activity that a company carries out, considering that basic rigidity is an essential skill. It's not like a basic skill becomes an apparent or obvious basic rigidity. It's not a black and white thing that suddenly happens all at once. It is also not easy to predict future trends or trends, and there is no guarantee that the prediction will be correct - these would only be estimates. According to Leslie Wexner, CEO of Limited Brands, says, “Success breeds failure because the more you know about something. works, the less likely you are to think it won't work.