Final answer:
When a company excels in an activity crucial to its strategy and competitiveness, it has a 'Core competency'. This is a unique strength that helps the company outperform competitors and stands out in the market.
Step-by-step explanation:
When a company performs an activity quite well, and that activity is central to its strategy and competitiveness, it is said to have a Core competency. Core competency refers to a company's unique ability or advantages that allows it to outperform competitors. These competencies are what make the business stand out in the marketplace and are often linked to the company's successes. By focusing on these areas, a company can create a sustainable competitive edge over firms that may spread their resources too thin by trying to offer a vast array of products or services.