The document discusses the concepts of dynamic capabilities and the resource-based view of the firm. It explains that dynamic capabilities allow firms to adapt their resource configurations to changing market conditions in order to gain and maintain competitive advantages. Specifically, dynamic capabilities help firms rearrange and develop their resources to create new value through activities like product development, strategic decision-making, and alliance-building. The document also discusses how dynamic capabilities differ based on the level of dynamism in a market and how firms can develop and improve their dynamic capabilities over time through processes like repeated practice, codification of procedures, and learning from failures.

1. Dynamic Capabilities Srini Kumar Marketing Strategy MBA 260G based on the paper: Dynamic Capabilities – What Are They? (Eisenhardt/Martin: Strategic Management Journal , 2000)