The Capability Lifecycle: Overview - Branching and Capability Transformation

9 important questions on The Capability Lifecycle: Overview - Branching and Capability Transformation

When occurs capability branching?

When factors external to the capability have a strong enough impact to alter the current development trajectory of the capability.

Where can the factors for capability branching be derived from?

From within or outside of the organization in which the capability resides, termed the ‘internal’ and ‘external’ selection environment, respectively.

What are important external factors?

  • Changes in demand
  • Science and technology
  • Availability of raw materials
  • Government policy.
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What are the branches of the capability lifecycle?

  1. Retirement
  2. Retrenchment
  3. Replication
  4. Renewal
  5. Redeployment
  6. Recombination

Which 2 sorts of branches does the capability lifecycle reflect?

  1. Those that threaten to make a capability obsolete
  2. Those that provide new opportunities for capability growth or change

How can redeployment or recombination be used?

To utilize unused portion of a capability (emerged form efficiency improvements)

How can recombination, replication, or redeployment be used?

Existing capabilities in another market to increase revenues.

Which 2 forms may capability redeployment take?

  1. The sharing of a capability between the old and the new market. Many instances of related diversification fall into this category.
  2. Intertemporal transfer of capabilities from one market to another, where a firm exits a market (often a declining one) and redeploys the capabilities in a new market.

How can capabilities respond to opportunities?

In addition to redeployment, firms may use renewal or replication to respond to opportunities.

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