Final answer:
A core competency is a superior competency compared to the competition that allows a company to differentiate itself and gain a competitive advantage in the market.
Step-by-step explanation:
A core competency is defined as a competency that is superior to those of the competition. It refers to the specialized knowledge, skills, and capabilities that enable a company to differentiate itself from its competitors and create a competitive advantage in the market. This can be in terms of product quality, customer service, innovation, or any other aspect that sets the company apart.
For example, Apple's core competency lies in its design and innovation. This has allowed them to consistently create products that are superior to those of their competitors, such as the iPhone and MacBook.
In contrast, a distinctive competency refers to a unique capability or advantage that a company possesses, which is not easily replicated by competitors. It is a source of competitive advantage that gives the company a unique selling proposition in the market.