Which statement defines core competencies in the context of this topic?

• A. Core competencies (Never outsourced)
• B. Complementary competencies (Would outsource to an expert)
• C. Residual competencies (Outsource to anyone)
• D. Capabilities

Answer: (A)

Core competencies are the unique capabilities a business does best that give it a competitive edge and that the company should develop and protect internally. The statement that core competencies are never outsourced best fits this idea because it emphasizes keeping these central strengths in-house to safeguard the competitive advantage and maintain control over how they’re developed and applied. In practice, firms often outsource non-core functions to specialists while continuing to invest in and protect their core activities. The other options don’t define what core competencies are: complementary competencies are supporting activities that can be outsourced; residual competencies would be leftovers not central to the firm’s differentiation; and capabilities is a broader term that doesn’t specify the crucial, internally protected activities that truly drive competitive advantage.