Core Competencies are the most significant skills that create value within a company and the key areas of expertise that are distinctive to a company and critical to the company's long-term growth agency. Core competencies are the elements that demonstrate that a company is superior to its competitors in the critical, core areas of the company where the most value is added to its products. These areas of expertise can cover anything from product development to employee dedication. A competency that is central to business operations but is not exceptional in some way is not considered a core competency, as it will not generate a differentiated advantage over rival firms. It derives from the concept of key skills; standardized or readily available resources will not allow a company to gain a competitive advantage over rivals (Marketline Business Information Center, 2007). What makes each company different is the fundamental element that has allowed it to establish itself on the market. Different companies have different resources to exploit (Moore, 2005). If a company can define what its core competencies are, then it will have a better chance of innovating. Innovation is the key to a company's longevity in the market, as it prevents the company and/or product from entering the decline phase. Whether it's application or product innovation, a company's ability to focus on their core gives them an edge in the industry. As John Dewey states, “A problem well defined is half solved” (Dundon, 2002). Most companies don't know what their problem is and aren't able to focus on it. A company that knows what the problem is has a better chance of taking its core component and innovating appropriately to s...... middle of paper ......vate. Innovation came to Ringler from outside the box but within the company. Ringler hasn't reinvented herself. Ringler simply took an existing idea and applied it in a new and unique way. This tradition of independence and entrepreneurship has inspired numerous innovations at Ringler, including the incorporation of various types of trust concepts into the structured transaction proposal. Ringler Consultants also pioneered the use of sophisticated claims analyzes and life care plans in structured settlements, which better defined both the needs and costs for future care of the injured person. With ninety-eight percent of new ideas already existing, a company must seek new stimuli both internally and externally (Dundon, 2002). Ringler was and is able to use one of its greatest core competencies, people, to advance the structured settlements industry.