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The Difference Between a Distinctive Competence and a Core Competence

Question 76

Multiple Choice

The difference between a distinctive competence and a core competence is that


A) a distinctive competence refers to a company's best-executed functional strategy and a core competence refers to a company's best-executed business strategy.
B) a distinctive competence refers to a company's most strategically important resource whereas a core competence refers to the basis of a company's competitive advantage over rivals.
C) a distinctive competence is a competitively relevant internal activity that a firm performs especially well relative to other internal activities,whereas a core competence is a competitively important activity performed by key strategic allies.
D) a distinctive competence represents internal activity that is performed with a very high level of proficiency whereas a core competence is a proficiently performed internal activity that is central to a company's strategy and competitiveness.
E) a core competence usually resides in a company's technology and physical assets (state-of-the-art plants and equipment,attractive real estate locations,and so on) whereas a distinctive competence usually resides in a company's human capital,information capital,or organizational capital.

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