GENERAL KNOWLEDGE

Detailed explanation-1: -Core competencies are resources and capabilities that serve as a source of a firm’s competitive advantage over rivals. Core competencies distinguish a company competitively and reflect its personality.

Detailed explanation-2: -Competitive advantage is created by using resources and capabilities to achieve either a lower cost structure or a differentiated product. A firm positions itself in its industry through its choice of low cost or differentiation. This decision is a central component of the firm’s competitive strategy.

Detailed explanation-3: -HR environment is responsible for competitive advantage as it cannot be imitated easily by the competitors. Human resources are more important than physical resources.

Detailed explanation-4: -A resource or capability is a core competency if it is valuable, rare, costly to imitate, and non-substitutable. A capability or resource is valuable when it allows the company to capitalize on opportunities or defend against external threats.