Distinctive Competitiveness


Meaning: Distinctive Competence is a set of unique capabilities that certain firms possess allowing them to make inroads into desired markets and to gain advantage over the competition; generally, it is an activity that a firm performs better than its competition. To define a firm‟s distinctive competence, management must complete an assessment of both internal and external corporate environments. When management finds an internal strength and both meets market needs and gives the firm a comparative advantage in the market place, that strength is the firm‟s distinctive competence.

Defining and Building Distinctive Competence: To define a company‟s distinctive competence, managers often follow a particular process.

1. They identify the strengths and weaknesses in the given marketplace.

2. They analyze specific market needs and look for comparative advantages that they have over the competition.


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