What is distinctive competence?

Distinctive competence
refers to the core skills and practices that increase the competitiveness of an organization and
make it different from its competitors. An organization's competitors cannot imitate this
competence (at least in the short term), allowing an organization to gain an advantage over
others. An organization must protect its distinctive competence to retain its competitive
edge.

To determine its distinctive competence or competences, an organization
should conduct an internal and external review and find those areas of skill and technology that
are in demand in the marketplace. If these skills are not in demand, they are not areas of
competence. An organization must also consistently change its distinctive competence in a
changing business environment to keep its competitive edge, and its competence must become part
of its corporate strategy. Examples of distinctive competence are fast delivery and the
extremely high quality of an organization's product.