Final answer:
The correct option is d). The process described is known as benchmarking, an innovation strategy focused on continuous improvement and leveraging core competencies.
Step-by-step explanation:
The process by which a firm identifies its critical success factors studies the best practices of other firms for these factors, and then implements improvements in the firm's processes to meet or exceed the performance of these competitors is called benchmarking. Benchmarking is used by companies as a method of continuous improvement where they compare their processes and performance metrics to industry bests or best practices from other companies. It is an innovation strategy that aims at understanding and adopting best practices from other organizations to improve efficiency, quality, and competitiveness. This concept aligns with the practice of a business focusing on one or a few products, which is often considered the core competency, to be successful over firms with a wider range of less-focused products.