Question

Describe the relationship between a distinctive competency, a competitive advantage, and a sustained competitive advantage.

a) Distinctive competency leads to competitive advantage, which results in a sustained competitive advantage.
b) Sustained competitive advantage leads to a distinctive competency, which leads to a competitive advantage.
c) Competitive advantage leads to a distinctive competency, which might result in a sustained competitive advantage.

Answer 1

Distinctive competency leads to competitive advantage, which might result in a sustained competitive advantage.

Step-by-step explanation:

In the context of business, a distinctive competency refers to a unique set of capabilities or resources that a company possesses and can utilize to gain a competitive advantage. This can include factors like patented technology, efficient supply chains, or a strong brand image.

A competitive advantage is the ability of a company to outperform its competitors in the market. It is often derived from leveraging distinctive competencies. For example, a company with a patented technology may have a competitive advantage over others who do not have access to the same technology.

A sustained competitive advantage is a competitive advantage that a company is able to maintain over a long period of time. It is the result of consistently leveraging and improving upon its distinctive competencies. For example, if a company constantly invests in research and development to enhance its patented technology, it can maintain its competitive advantage.