Focus on Your Company’s Capabilities

Instead of looking for winning strategies outside of your company’s walls, outperform competitors by leveraging what your company does best. Use your company’s capabilities — the people, knowledge, systems, tools, and processes that create value for customers — as the foundation of competitive advantage. Here are three ways to make your capabilities work:

  1. Put capabilities first. Don’t decide on a strategic direction and then wonder what you need to get there. Look at your core strengths and let those drive your strategy.
  2. Identify differentiating capabilities. Figure out what your company does uniquely well, what your customers value, and what your competitors can’t emulate.
  3. Focus on capabilities, not just fixed assets. Fixed assets tend to expire or become obsolete. Capabilities help keep you agile because they can be applied to changing circumstances.



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