The difference between a core competence and a distinctive competence is that a
A)distinctive competence refers to a company's strongest resource or competitive capability, whereas a core competence refers to a company's lowest-cost and most efficiently executed value-chain activity.
B)core competence usually resides in a company's base of intellectual capital, whereas a distinctive competence stems from the superiority of a company's physical and tangible assets.
C)core competence is a competitively and strategically relevant activity that a firm performs well compared to its other activities, whereas a distinctive competence is a competitively relevant activity a firm performs well compared to other rival firms.
D)core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies.
E)core competence usually resides in a company's technology and physical assets, whereas a distinctive competence usually resides in a company's know-how, expertise, and intellectual capital.

Question

Quizplus · Accepted Answer

Core competence refers to a company's internally performed activities that contribute significantly to its competitiveness and differentiation, while distinctive competence refers to a company's unique advantage over its competitors in a particular area. The key difference between the two is that core competence has to do with a company's own activities, while distinctive competence is a comparison to rivals. Choice A is incorrect because core competence is not necessarily the lowest-cost activity, and it can also be executed inefficiently. Choice B is incorrect because core competence can encompass both physical and intellectual assets. Choice D and E are incorrect because they do not accurately describe the distinctions between core and distinctive competences.

The Difference Between a Core Competence and a Distinctive Competence