A company’s strategic capability is a function of its resources, core competences and the deployment of these in its organisation.
Unique resources and core competences critically underpin the organisation’s competitive advantage.
In order to achieve sustained competitive advantage core competences must be dynamically renewed, this is referred to as dynamic capability.
The organisation’s core competences must match the Critical Success Factors for competing in an industry, hence CSFs determine the choice of competitive weapons which firms build into their strategy.