Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market – ‘qualifiers’.
Strategic capabilities means the capabilities of an organisation that contribute to its long-term survival or competitive advantage.
The four key criteria of strategic capabilities are:
Value. Rarity. Inimitability. Non-substitutability.
Strategic capabilities are of value when they provide potential competitive advantage in a market at a cost that allows an organisation to realise acceptable levels of return.
Rare capabilities are those possessed uniquely by one organisation or by a few others.
Inimitable capabilities are those that competitors find difficult to imitate or obtain.
Non-substitutability refers to that the organisation is not at risk from substitution.
Case review
This is a case about Dyson—a distinctive company, which is famous for its distinctive vacuum cleaners.
In this case, Dyson’s success can be attributed to several factors. The leader James Dyson focuses on his own image and personal brand in the firm’s promotion. His great attention paid to the engineering and design, holding fashion show and funding design school make contributions to the product innovation. Dyson firm also has a HR strategy as hiring people who are creative and courageous- unconditioned fresh-thinker. The new, radical changed product can stand out from the crowd. On the other hand, Dyson believe the combination of design engineering and manufacturing is crucial in developing the most inimitable competences that can be protected through patents. Global working cuts down the manufacturing costs and improves the competency of the firm.
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