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Business Strategy and Accounting Basics

Which term describes the core technologies or capabilities of a company that bring value to customers and are hard for competitors to imitate?

  1. ACore competence
  2. BBenchmarking
  3. COutsourcing
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Answer: A. Core competence

Core competence is a company's central capability that provides value to customers, is hard for competitors to imitate and can be applied to a variety of products and markets. For example, a semiconductor manufacturer that has accumulated a particular manufacturing or design technology over many years can deploy it across several products as a core competence. A common approach is to concentrate management resources on the core competence and leave other work to outside companies to strengthen competitiveness.

  • A. Correct. Its features are value to customers, difficulty of imitation and broad applicability.
  • B. This is a method of comparing the company's operations with the practices of excellent companies or departments and using the comparison for improvement.
  • C. This means entrusting part of the company's work to specialized outside companies.
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