CS Professional · Strategic Management and Corporate Finance · Competitive Positioning

Which statement best distinguishes a distinctive competence from a threshold competence in resource-based analysis?

Threshold competences are the minimum capabilities needed just to compete and are typically shared by rivals, while distinctive competences are unique capabilities that let a firm outperform competitors and create advantage. Distinctive ones are not limited to physical assets.

1. AThreshold competences are rare, while distinctive ones are common to all rivals
2. BThreshold competences are needed to compete at all in the market, while distinctive competences let a firm outperform rivalsCorrect
3. CBoth terms mean the same thing
4. DDistinctive competences relate only to physical assets