Organizational Capabilities
a firms capacity to deploy resources for a desired end result. Prahalad and Hamel - core competences - to distinguish those capabilities fundamental to a firms strategy and performance. make a disproportionate contribution to ultimate customer value, or to the efficiency with which that value is delivered and provide a basis for entering new markets
Scarcity
E.g. In oil and gas exploration, 3D seismic analysis is critical to reduce costs, but such technology is widely available.
Relevance
E.g. Retail banking shifts toward ATMs and online transactions => retail branch networks became less relevant for customer service.
STRATEGY
3. Appraise the firms resources and capabilities in terms of: (a) strategic
importance (b) relative strength
2. Explore the linkages between resources and capabilities 1. Identify the firms resources and capabilities
CAPABILITIES
RESOURCES