Final answer:
A core capability is most closely related to a firm's unique production/design processes and technical capabilities that are difficult for competitors to replicate. Option b is the closest match to this definition. Firms focusing on their core capabilities often create differentiated products that give them a strategic advantage.
Step-by-step explanation:
The most appropriate definition of a core capability could be closely related to the concept of core competency, which is integral to a business's strategic advantage. A core capability refers to the unique production/design processes, technical capabilities, or specialized knowledge that enable a firm to deliver value in a way that is difficult for competitors to replicate. While the student's question directly asks for the definition of a core capability, none of the provided options perfectly match the textbook definition. However, since core capabilities often include the company's collective knowledge about how to coordinate diverse production skills and integrate multiple streams of technologies, option b, production/design processes unique to the firm, seems to be the closest match.
A business that focuses on leveraging its core capabilities — often in the form of focusing on one or a few products it can produce exceptionally well — typically experiences more success than firms with a wide, undifferentiated range of products. This strategy allows a business to differentiate its offerings, whether through the physical aspects, location, intangible benefits, or unique perceptions of the product, creating what is known as differentiated products.