Final answer:
A company that excels in an important competitive activity versus its competitors is said to have a distinctive competence, which is a specific strength that gives it a competitive advantage.
Step-by-step explanation:
When a company performs a particular competitively important activity exceptionally well compared to its competitors, it is said to have a distinctive competence. This term refers to a unique strength that enables a firm to achieve superior efficiency, quality, innovation, or customer responsiveness and distinguish itself from its competitors, ultimately providing it with a competitive edge. Unlike a broad core competence, which refers to central capabilities that are fundamental to a company's business and potentially applicable in multiple products or markets, a distinctive competence is more specific and unique to the organization. Focusing on a distinctive competence, much like specializing based on comparative advantage in international trade, can lead to better performance and competitive superiority.