STRATEGIC CAPABILITY

STRATEGIC CAPABILITY

Strategic capability refers to the

resources and competences of an
organisation needed for it to survive
and prosper

Strategic Capabilities and

Competitive Advantage

RESOURCES
Tangible resources are physical
assets of an organisation such as
plant, labour, and finance.
Intangible resources are nonphysical assets such as information,
reputation, and knowledge.

Tangible Resources

FINANCIAL RESOURCES - the firms capacity

to borrow and generate internal funds

ORGANIZATIONAL RESOURCES - formal

reporting structures

PHYSICAL RESOURCES - sophistication and

location of a firms plant and equipment;
distribution facilities; product inventory

TECHNOLOGICAL RESOURCES - stock of

technology, such as patents, trademarks,
copyrights, and trade secrets

Intangible Resources

HUMAN RESOURCES - knowledge; trust; skills;

collaborative abilities

INNOVATION RESOURCES - scientific capabilities;

capacity to innovate

REPUTATIONAL RESOURCES - brand name;

perceptions of product quality, durability, and
reliability; positive reputation with stakeholders,
e.g., suppliers/customers

RESOURCES CATEGORIES

Physical
Physical
resources
resources

Financial
resources

Human
Human
resources
resources

Intellectual
Intellectual
capital
capital

The terminologies of
strategic capability
Threshold resources

Threshold competences

Unique resources

Core competences

Threshold Resources
The resources need to meet
customers minimum requirements and
therefore to continue to exist.
To an athlete : The athletic ability
suited to a
chosen event

Threshold Competencies
Activities and processes needed to
meet customers minimum
requirements and therefore to
continue to exist.
Healthy body, Medical facilities,
training venues and equipments and
food supplements.

Unique resources
Resources that underpin competitive
advantage and are difficult for
competitors imitate or obtain.
Exceptional heart and lungs, Height
or weight, World class coach.

Core Competences
Core competences are the skills and
abilities by which resources are
deployed through an organisations
activities and processes such as to
achieve competitive advantage in ways
that others cannot imitate or obtain.
A combination of dedication, tenacity,
time to train and will to win.

Value of strategic capability

The strategic capabilities must be
able to deliver what the customer
values in terms of product or service.
customer values (CSFs)

Reputation
After sales service
Delivery reliability
Technical quality