Diagnosing the Gap - A New Way of Thinking About the Necessary Capabilities

4 important questions on Diagnosing the Gap - A New Way of Thinking About the Necessary Capabilities

What are the 2 dimensions for thinking about capabilities, according to the article?

  1. The orientation is inside-out or outside-in;
  2. The function exploits existing resources or explores new opportunities.

What is the essence of the Resource-Based View?

Scarce, non-imitable and valuable resources are there to be used and management is responsible to improve and fully utilise them. Emphasis: internal efficiency and short-term cost reductions.

What does the Outside-In Orientation entail?

The starting point here is the market, looking at customers changes, new needs and competitors. From here there is a greater set of opportunities for competitive advantage and growth.
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When looking at the figure, which Capabilities approach should the most attention be paid to?

All the Capability approaches should be used together - and work together - but it is important to invest the most in the Adaptive Capabilities to close the capabilities gap.

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