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.

More on distinctive capabilities.
More on business strategy: 3C's Model of Ohmae, Ansoff Matrix, Business Continuity Planning, Business Model, Business Model Canvas, more...

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.