What are core competencies and distinctive competencies and how do they lead to competitive advantage?

Question

What will be an ideal response?

Answer 1

Core competencies are capabilities the firm focuses on and performs well while pursuing its vision.  These capabilities allow the firm to complete a task or a series of related tasks.  They lead to competitive advantage when they allow the firm to create value for customers by performing a key activity better than competitors.

Distinctive competencies are a little different in that these are core competencies that are different, or unique, from those possessed by competitors.  Distinctive competencies lead to competitive advantage when they allow a firm to perform an activity that creates customer value that competitors can't perform.