What Are Some Examples of Distinctive Competencies?

What Are Some Examples of Distinctive Competencies?

Examples of distinctive competencies include lean manufacturing, management development and payroll processing. Distinctive competencies are unique capabilities of a company that set it apart from others in the industry, giving it a competitive advantage. A company's distinctive competencies usually arise from sources such as unique business processes and technology.

A company's competitors can not imitate its distinctive competencies over the short term, which gives it a competitive advantage. A distinctive competency is only advantageous to a company if there is a demand for it within the market. A company must assess its internal and external environment to determine its distinctive competencies. A firm typically integrates its distinctive competencies into its corporate strategy since they are the company's strongest qualities. A company must nurture its distinctive competencies to evolve with the changing environment to sustain its competitive advantage. By cultivating a learning environment a business creates a dynamic capability that enables it to stay ahead of its competitors; this dynamic capability must be protected to prevent it from being replicated by competitors. Management should constantly monitor changes within the market, and when necessary realign a firm's distinctive competencies to suit the market. A company such as McDonald's uses its distinctive competency of effective control systems to earn high profits from its franchises.