Final answer:
A core competency is indeed a strategic advantage that differentiates an organization in the market by focusing on specific knowledge and skills that create value for customers, which is a true statement. This focus enables a competitive advantage and often leads to greater success compared to firms with a broader product range.
Step-by-step explanation:
A core competency is indeed a set of knowledge and skills that make organizations superior to competitors and creates value for customers. The concept of core competencies is central to strategic management and competitive strategy. Organizations that identify and focus on their core competencies tend to perform better because they concentrate on the strengths that distinguish them in the marketplace, rather than diluting their efforts across too many areas. Thus, the notion that a business that focuses on one or a few products, drawing on its core competencies, is typically more successful than firms trying to offer a wide range of products, is accurate.
By focusing on what they do best, companies can develop a competitive advantage, becoming more efficient, innovative, and customer-centric. It allows businesses to optimize their resources and attention in areas where they can make the most impact and deliver the highest value to customers, thereby strengthening their market position and profitability.