Distinctive Capabilities


Definition: Distinctive Capabilities is a business strategy concept by Kay ('93) according to which a successful company achieves a competitive advantage other firms can not replicate by establishing a unique, distinctive character in the relationships it has with its external environment / stakeholders or internally: with customers, suppliers, employees, investors, shareholders. There are 3 ways this can be achieved (3 distinctive capabilities):
- Architecture: a structure of relational contacts
- Innovation: a strong capability to (repeatedly) generate technological innovations
- Reputation: a strong corporate reputation
Compare: Dynamic Capabilities, Core Competence.


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