Which term refers to Resources and Capabilities that serve as a source of competitive advantage for a firm over its rivals?

• A. Core competency
• B. Strategic asset
• C. Competitive parity
• D. Operational excellence

Answer: (A)

Core competencies are the resources and capabilities that give a firm a competitive advantage over rivals. They consist of the unique combination of skills, knowledge, and routines that let the company deliver greater value in ways competitors find hard to replicate. When these capabilities are valuable, rare, difficult to imitate, and the firm is organized to exploit them, they can sustain a competitive edge over time. While strategic assets or operational excellence relate to valuable strengths or performance goals, they do not specifically name the bundle of capabilities that uniquely differentiates a firm. Competitive parity is simply matching what rivals do, not outperforming them, so it isn’t the term for the source of sustained advantage.