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) a 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) a 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) a core competence represents a resource strength, whereas a distinctive competence is achieved by having more resource strengths than rival companies.
E) a 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

A core competence is an activity that a company performs well compared to its other activities, while a distinctive competence is an activity that a company performs well compared to its competitors. Therefore, option C is the correct answer. The other options are incorrect because they either incorrectly define core and distinctive competencies or mix up their characteristics.

The Difference Between a Core Competence and a Distinctive Competence