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,while 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

The definition of a core competence and distinctive competence given in option C is the most accurate. A core competence is something a company does well in comparison to its other activities, and a distinctive competence is something a company does better than its rivals. The other options either confuse the definitions of the two terms or include irrelevant information.

The Difference Between a Core Competence and a Distinctive Competence