Companies are involved in a continuous process of change in order to renew capabilities and achieve a competitive advantage in a hyper competitive setting. The key, then, is to own and nurture the resources and competencies that make up the essence of the business. This work discusses the impact of core competences on organizational performance as a critical issue in manufacturing sector This paper proposes model for creating competitive advantage through core competence. The approach is used by reviewing some concept about core competence. An organizer questionnaire was developed ,through which data of 59 manufacturing organizations was collected. A range of methods were used to analyses statistical data, and the results were extracted using SPSS. The result’s of correlation analysis, shows that there is a significant correlation among core competences and organizational performance.Using regression analysis, core competencies were shortlisted. Based on this, we recommend that manufacturing organizations should develop of their core competences as a strategic tool to enhance organizational performance