Skills within the firm that competitors cannot easily match or imitate and that may exist in the firm's value creation activities.

Question

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The term core competence refers to skills within the firm that competitors cannot easily match or imitate. These skills may exist in any of the firm's value creation activities-production, marketing, R&D, human resources, logistics, general management, and so on. Such skills are typically expressed in product offerings that other firms find difficult to match or imitate. Core competencies are the bedrock of a firm's competitive advantage. They enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

Skills Within the Firm That Competitors Cannot Easily Match or Imitate