The real sources of competitive advantage are not products but management's ability to consolidate skills and technologies into competencies to adapt to changing circumstances.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, market positioning, and customer service.

Skills and Technologies

The abilities and knowledge that individuals have, along with the tools and machines they use, to perform specific tasks or solve problems.

Competencies

A set of defined skills, knowledge, abilities, and attributes that are needed to perform a job effectively.