This document discusses strategic capabilities in organizations. It defines strategic capabilities as the resources and competencies needed for an organization to survive and prosper. It distinguishes between threshold resources/competencies required to meet minimum customer requirements and unique/core competencies that provide competitive advantage. Cost efficiency, experience curves, and dynamic capabilities that allow renewal are discussed as important strategic capabilities. Benchmarking and analyzing value chains/networks can help diagnose an organization's strategic capabilities.

1. Strategic Capability

4. Strategic Capabilities and Competitive Advantage

6. Resource Categories Physical resources Financial resources Human resources Intellectual capital

7. The Terminology of Strategic Capability Threshold resources Threshold competences Unique resources Core competences

15. Sources of Cost Efficiency Cost efficiency Economies of scale Experience Product design Supply costs

18. The Experience Curve

22. Criteria for Inimitability Robustness of strategic capability Complexity Culture and history Causal ambiguity

26. Diagnosing Strategic Capability Activity maps Benchmarking SWOT analysis Value chain/ Value network

28. Exhibit 3.6 The Value Chain

30. The Value Network

34. SWOT Analysis Strengths Weaknesses Opportunities Threats