Which statement best describes core competency?

• A. The capability to produce at the lowest cost in any market
• B. Resources and Capabilities that serve as a source of competitive advantage for a firm over its rivals
• C. A general management skill set
• D. A marketing tactic

Answer: (B)

Core competencies are the unique bundle of skills, know-how, and systems that allow a company to differentiate itself and outperform rivals across multiple markets. They come from combining and leveraging resources—like technology, talent, routines, and organizational capabilities—into capabilities that are hard for competitors to imitate and that enable access to a variety of products or markets. The statement described matches this idea by framing core competencies as resources and capabilities that serve as a source of competitive advantage over rivals.

The other descriptions miss the mark: simply aiming to produce at the lowest cost in any market is about cost leadership, not a sustained internal strength; a general management skill set is too broad and does not inherently drive lasting advantage; and a marketing tactic is a specific, short-term action rather than an enduring, organization-wide capability.