Introduction

Different organizations have a different endowment in human resource and technological capabilities. The collection of the human resource, mainly the business and personal skills within reach of the firm, amounts to core competence. Organizations are tasked with coordination of the various business and individual skills and also integrating them with the relevant technology to achieve maximum results. This paper seeks to establish the relationship between core competence, competence needed by a company and how they influence the formation of cooperative strategies among companies. It unravels that firms are always in shortage of the resources required to keep a notch higher in the market. This prompts them to form alliances to maintain market power and enjoy economies of scale.