Capability represents the identity of your
your employees and customers.
It is your ability to perform better than competitors using a distinctive
and difficult to replicate set of business attributes. Capability is a
capacity for a set of resources to integratively perform a
Capabilities – the
Basis of Your Competitive Advantage
Through continued use, capabilities
become stronger and more difficult for competitors to understand and
imitate. As a source of competitive advantage, a capability "should
be neither so simple that it is highly imitable, nor so complex that
it defies internal steering and control."4
Capabilities grow through use, and how fast they grow is critical to
According to the
of the company,
sustainable competitive advantage
is achieved by continuously developing existing and creating new
resources and capabilities in response to rapidly changing market
conditions. Among these resources and capabilities, in the
represents the most important
The Tree of
and Reproducible Capabilities
The opportunity for your company to
sustain your competitive advantage is determined by your
capabilities of two kinds –
distinctive capabilities and reproducible capabilities – and
their unique combination you create to achieve
Your distinctive capabilities – the
characteristics of your company which cannot be replicated by
competitors, or can only be replicated with great difficulty – are
the basis of your
sustainable competitive advantage.
Distinctive capabilities can be of many kinds:
trust-based working relationships.
7 Routes To
Reproducible capabilities are those that
can be bought or created by your competitors and thus by themselves
cannot be a source of competitive advantage. Many technical,
financial and marketing capabilities are of this kind. Your
distinctive capabilities need to be supported by an appropriate set
of complementary reproducible capabilities to enable your company to
sell its distinctive capabilities in the market it operates...
Master of Business Synergies
A corporation that builds on
utilizes skills that combine to strengthen
value chains and build greater competitive advantages. This leads to
whereby they become more productive together than independently.
Coherence is the
glue that binds various pieces of your firm together, enabling the to act as
one. Anyone who wants to
of tomorrow must acquire this vital trait – coherence. You cannot realize
the benefits of the
without this glue that holds together its elements. Coherence is what makes
than the sum of it parts...
7 Dimensions of Strategic
Strategic Innovation framework weaves together seven dimensions to
produce a range of outcomes that drive growth.
Core Technologies and
is the set of internal capabilities, organizational competencies and assets
that could potentially be leveraged to deliver
to customers, including technologies,
vs. Red Ocean Strategy
The principles of
competitive disruption can help you create temporary advantage by
combining a vision of disruption with the capabilities necessary for
disruption, and by obtaining advantage through tactics. The two fundamental
capabilities necessary to create disruption are
of Winning in Business
Creating Sustainable Profits:
9 Questions To Answer
Capability Approach vs.
Traditional Functional Paradigm
In the capability model,
are predominantly concerned with issues about the quality of products and
services provided to customers (external and internal), the flow of
value-added work, and roles and responsibilities...
– a New Approach to Organizational Transformation
is a total systemwide
transformation of your organization. It means designing and transforming
organizations based on
assumptions of human capability rather than limitations...
Why Change Fails:
8 Common Errors
To enhance organizational capability,
BP reduced or removed central functions, and
were empowered to chose their own routes to implement changes. A
flat organization was established. The number of management
levels was reduced from 13 to 5...