Production management as the science and practice of enterprise management has historically changed following the development of market relations. The main management objective has always been profit maximization and competitive position in the market. Due to current market conditions, high levels of competition exacerbated by the globalization of world markets, the achievement of sustainable competitive advantages has become a difficult task for industrial enterprises. Core competencies, being the main merits or strategic advantages of the business, are a combination of pooled knowledge and technical and technological capabilities that allow this business to be competitive in the market. Understanding core competencies makes it possible for the company to invest in its strengths and to identify effective development strategies. The identification, assessment and use of core competencies allow you to tap into the hidden reserves of the business, thus promoting the productivity and efficiency of its operations, which radically changes the entire logic of the resource management of the company. Building development strategies for industrial enterprises is impossible without the management’s regard for the company's true core competencies, which defines the basis and criteria for their selection. A managerial emphasis on core competencies provides a logic rationale for outsourcing non-core resources or activities. At that, outsourcing serves as an essential accompanying tool to leverage hidden reserves through the allocation and development of core competencies. It is of critical importance to understand the logic of business diversification within the framework of the stated objectives, possible negative consequences and an accurate assessment of potential competitive advantages.