Distinctive Competence is a set of unique capabilities that certain firms possess allowing them to make inroads into desired markets and to gain an advantage over the competition; generally, it is an activity that a firm performs better than its competition. It allows the company to divert its attention into solving new problems as they come instead of resolving the same ones over and over again.
A distinctive competence is the something a company does well relative to competitors. They are the major source for organizations to grow and survive, and that’s exactly what differentiates the brand from competitors. To define a firm’s distinctive competence, management must complete an assessment of both internal and external corporate environments. When management finds an internal strength that both meets market needs and gives the firm a comparative advantage in the marketplace, that strength is the firm’s distinctive competence. Taking advantage of an existing distinctive competence is essential to business strategy development. Firms can possess distinctive competence in a wide variety of areas, including technology, marketing, and management. It basically includes a list of valuable practices and technical skills that make your organization better than others. To develop a particular distinctive competence, companies must conduct a thorough external and internal review of their corporate environment.