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What is Distinctive competence

What is Distinctive Competence

Distinctive Competence is a competency unique to a business organization, a competency superior in some aspect than the competencies of other organizations, which facilitates the production of a unique value proposition in the function of the business.

Apple’s distinctive competencies: Innovative culture, successful entry into new markets, human centered design and development.

unique value proposition

What is distinctive competence?

How does it serve as a critical factor for a firm to outsmart its rivals? This is the topic for discussion. Distinctive competence is nothing but the unique capacity of a firm in terms of resources, behavior, strengths and synergy, in relatively or exceptionally large measures.

It is the advantage a company has over its competitors, because it can do something that they cannot or it can do something better than they can.

distinctive competence

Distinctive competence can be in the form of

  1. Patents
  2. Exclusive access to natural resources
  3. Government licenses
  4. Pioneer efforts
  5. Superior product
  6. Product quality
  7. Competitive price
  8. Unmatched promotional offers, such as discounts and prize coupons
  9. Particular attribute of a product-say, highly fuel efficient four wheeler
  10. Market niche creation for highly specialized products
  11. Superior R and D skills
  12. Possessing large number of equity share holders
  13. Marketing skills
  14. Managerial skills
  15. Synergistic work force
  16. Supportive union and what not.

It is unfortunate that some firms fail to cash in on these competencies for better strategic formulations that might help them to have an edge over their competitors.

These critical success factors have to be developed by organizations to capitalize the strategic opportunities that they present for developmental purposes.

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