Final answer:
The three types of distinct competencies that can underpin a sustained competitive advantage are Core Competencies, Dynamic Capabilities, and Strategic Assets. These competencies allow businesses to specialize, adapt, and leverage unique resources to maintain a market edge over competitors.
Step-by-step explanation:
The three types of distinct competencies that can be the foundation of a sustained competitive advantage are: a. Core Competencies, Dynamic Capabilities, and Strategic Assets. Core competencies refer to a company's main strengths or strategic advantages, which are the specific set of skills, technologies, or resources that the company does particularly well. Dynamic capabilities are the firm's ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. Strategic assets are valuable resources owned by the company that are difficult for competitors to imitate or substitute.
Focusing on core competencies allows a business to specialize in a particular area, offering a specific kind of value to the customer, which can lead to the firm developing a sustainable competitive advantage. By honing in on what they do best, businesses can outperform competitors who may try to offer a wider range of products but without the same level of expertise or efficiency. Dynamic capabilities enable a business to adapt to changes in the market, while strategic assets serve as foundational resources that give the firm an edge over its competitors.