Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm's must recognize that its competencies give it an advantage over the competition.
a. management
b. target markets
c. shareholders
d. employees
e. strategic partners

B- target market

The firm'sTarget market_ must recognize that its competencies give it an advantage over the competition.

Explanation:Target Market:This Is a group of customers that the business directs it's production and marketing efforts on.

it is necessary for establishments to know the consumers purchasing from the company and how to continually cater for thier needs because Companies and manufacturers have competitors who can compete with them with thier target market

A company must be willing and able to have an edge over it's competitors by improving the benefits they provide to their target market , This is by knowing who buys from the company, thier wants and needs and prospective/intending consumers by implementing strategies essential for the business to thrive or have a competitive advantage over it's competitors.

B) target markets

Explanation:

I'm not sure if you remember the Pepsi challenge where allegedly "ordinary" people were blindfolded and they were given both Pepsi and Coke and they had to choose their favorite. That challenge started in 1975, and the results were supposedly favorable towards Pepsi. Theoretically way over 50% of the people liked Pepsi more than Coke. But if this is true why do Coke sales keep increasing while Pepsi sales keep diving?

At the beginning, the challenge had a significant impact in increasing Pepsi sales, but after a short time things were back as usual. For example, the latest update on Coke v. Pepsi sales are Coke sales increasing world wide from 17.3% to 17.8% of the total soda world market, while Pepsi's market share continues to fall from 10.3% to 8.4%. This represents 2018 sales, there are no new updates yet for 2019.

Back to the question. If better flavor was Pepsi's core competency over Coke, why aren't they number 1? Pepsi is always a few cents cheaper than Coke, so the price is not an issue for them. The answer is simple, either customers refused to agree with their core competency or the core competency never existed. Anyway, at least in western countries, the market is king, and a tyrant also. A company cannot impose a core competency, the market decides who has it or not. Pepsi is not even number 2 in the US, Diet Coke is number 2 (Coke is number 1).

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