Definition: Resources and Capabilities
Resources and Capabilities are the sources of competitive advantage and the primary source of profitability for any firm. Resources and capabilities empower a company to drive the business and face competition with their products & offerings for the need of customers.
Importance of Resources and Capabilities
Resources and organizational capabilities play an important role in business. They can be explained as:
A) Resources can be divided into:
1. Tangible – Physical and financial assets. Eg: Machinery, offices, warehouses
2. Intangible – Skills, reputation and brand names. Eg: Whatsapp, Disney
3. Human Resources – Skilled Employees
B) Organizational capabilities refer to the business routines, processes and the organizational culture. Identification of core competencies or capabilities can be useful in identifying what contributes more to customer value and which market
Hence, this concludes the definition of Resources and Capabilities along with its overview.
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