5 What are your unique capabilities?

A business’s capability is essentially its ability to ‘deploy resources effectively’ (Menguc et al., 2014, p. 315) in order to achieve its desired goal. If we consider the wide range of resources available to a business, from the people to the financial and everything in between, it is clear that a business’s capabilities should be understood broadly to include any of the following:

  • Skills and knowledge

  • Machinery and technology

  • Managerial systems

  • Values and norms

  • Organisational processes

  • Learning.

But why is this important? In essence, it is the unique utilisation and application of these capabilities that ‘may be at the root of why two firms that have similar resources obtain drastically different levels of performance’ (Menguc et al., 2014, p. 315).

Equally, as you reviewed this list you might have noticed that while some of the capabilities listed are quite tangible – machinery and technology, for example – others such as skills, knowledge and learning are quite intangible. Very often intangible capabilities are just as important as tangible capabilities, most particularly in knowledge-based businesses.

For you as an entrepreneur, the secret is to recognise your own capabilities and to understand how they are unique. It is these capabilities that will support your business model and enhance your unique value proposition.

Activity 3 Your unique capabilities

Timing: Allow approximately 10 minutes to complete this activity

What are your unique capabilities? Take a moment to reflect on what capabilities you have that are truly unique and how these might support your business model. You might wish to consult with a mentor or colleague who knows you and your business well.

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Discussion

At this stage you might struggle to identify capabilities that are unique to you and your business. That is ok!

Over time you should continue to reflect on this and look to strengthen and fine tune your capabilities to ensure that you are building upon your strengths and taking steps to address any weaknesses.

4 What is your unique value proposition?

6 Innovating your business model