Final answer:
A company must continually reinvest in a core competency or risk it becoming a liability.
Step-by-step explanation:
In a business context, continually reinvesting in a core competency is crucial to avoid it becoming a liability. This liability is known as a 'core competency maturity' where a company's once strong competitive advantage becomes a weakness. This happens because over time, competitors catch up or technology changes, reducing the relevance and effectiveness of the core competency.
For example, consider a technology company that specializes in developing advanced algorithms. Initially, their expertise in algorithms allows them to dominate the market. However, if they do not continue to innovate and adapt to emerging technologies, their once-dominant algorithms may lose their competitive edge, and the company's core competency would become a liability.
Therefore, it is essential for businesses to stay ahead of the curve and consistently invest in developing new skills, technologies, and expertise to sustain their competitive advantage.