Final answer:
Strategic fit among activities is crucial for achieving a sustainable competitive advantage, often through focusing on core competencies. This strategic alignment makes a firm’s offerings distinct and hard to imitate, enhancing its competitiveness.
Step-by-step explanation:
Strategic fit among many activities in an activity map is fundamental to sustainable competitive advantage. This concept emphasizes how a firm's various activities can be aligned in a way that distinguishes it from competitors and creates a unique value proposition. Core competency plays a significant role in this alignment, where a company focuses on one or a few areas of expertise, providing a distinct advantage over firms that spread their efforts across a wide range of products.
For a company to maintain a sustainable competitive advantage, it is vital to create a well-coordinated system of activities that reinforce each other, align with the company's strategic position, and are difficult for competitors to imitate. The concept of core competency suggests that by concentrating on a limited set of products or services, a business can hone its skills in those areas, leading to a stronger strategic fit and strategic competitiveness.