Which of the following best defines a distinctive competence?
A) It is what a company can make, do, or perform better than its competitors.
B) It is creating or acquiring companies in completely unrelated businesses.
C) It is the extent to which a competitor has similar amounts and kinds of resources.
D) It is the competitive move designed to reduce a rival's market share or profits.

Question

Quizplus · Accepted Answer

A distinctive competence is a unique capability or resource that a company possesses and can use to create superior products or services compared to its competitors. It is what a company can do or perform better than its competitors, giving it a competitive advantage.

Choices B, C, and D do not accurately define a distinctive competence. B refers to diversification, C refers to resource similarity, and D refers to a competitive move rather than a unique capability or resource.

Which of the Following Best Defines a Distinctive Competence