A. The difference between a core competence and a distinctive competence is that
1. a core competence refers to an activity that a company performs better than its rivals, while a distinctive competence refers to an activity that a company performs well
2. a core competence refers to an activity that a company performs well, while a distinctive competence refers to an activity that a company performs well and is central to its profitability
3. a core competence refers to an activity that a company performs better than its rivals, while a distinctive competence refers to an activity that a company performs well and is central to its profitability
4. a core competence refers to an activity that a company performs well, while a distinctive competence refers to an activity that a company performs better than its rivals
5. a core competence refers to an activity that a company performs well and is central to its profitability, while a distinctive competence refers to an activity that a company performs better than its rivals
B. For a particular company resource strength or capability to qualify as a basis for competitive advantage, it should
1. be something that a company does internally rather than in collaborative arrangements with outsiders
2. have the potential to qualify as patent or trademark
3. be hard for rivals to copy and not be easily trumped by the different resource strengths or capabilities of rivals
4. have the potential to lower the firm’s unit costs
5. be an industry key success factor and occupy a prime position in the company’s value chain