Final answer:
Core competencies are the unique resources, skills, and capabilities that enable a firm to distinguish itself and create a competitive advantage.
Step-by-step explanation:
The unique resources, skills, and capabilities that enable a firm to distinguish itself from its competitors and create a competitive advantage are often referred to as core competencies. These competencies can include specialized knowledge or expertise, advanced technology or systems, efficient supply chains, strong customer relationships, or unique branding and marketing strategies.
For example, an electronics company may have a core competency in product design and innovation, allowing it to consistently develop and launch new and technologically advanced products ahead of its competitors. This gives the company a competitive advantage in the market and attracts customers who value cutting-edge technology.
Another example is a clothing retailer that focuses on sustainable and ethically sourced products. This unique positioning sets it apart from competitors and appeals to environmentally conscious consumers who prioritize eco-friendly fashion.