Dynamic Capabilities: Creating and Sustaining Competitive Advantage

Running head: DYNAMIC CAPABILITIES
DYNAMIC CAPABILITIES
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Author Note

1DYNAMIC CAPABILITIES
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
Answer to Question 4......................................................................................................................5
References........................................................................................................................................7

2DYNAMIC CAPABILITIES
Answer to Question 1
The business environment can be stated to be highly competitive and dynamic in nature.
This can be largely attributed to the presence of globalization and the massive development of
technology which has taken place recently. In lieu of this, it can be largely mentioned that, any
firm which wants to ensure success in the long run and carry out the business operations
successfully would be required to ensure that they are being able to create a competitive
advantage for themselves (Bacq & Eddleston, 2018). The creation of the competitive advantage
will not only assist the firm in meeting with all the business needs but will also ensure that the
firm is able to combat against all the competitors as present in the dynamic market and create a
position for itself which will be hard to replace. However, the different businesses would be
required to understand that the creation of the competitive advantage is not enough and in order
to ensure success in its overall operations the business will be required to sustain this competitive
advantage which they will be creating for themselves. Hence, in lieu of this, any business needs
to master the creation of the competitive advantage and even ensure that they will be successful
in sustaining the same. In today`s dynamic markets, the total intangible assets as well as the
marketing capabilities are the main essence required for the survival of the firm in the long run.
The intangible assets which any business would require for the success can be stated to
be the marketing equity, the innovation and the building of the organizational brand equity which
is very often also known as the customer equity (Teece, 2016). Hence, if it has to be understood
that a business wants to ensure that they are able to create competitive advantage and ensure the
sustenance of the same, then they will be required to engage in innovation which will ensure that,
they are able to create a good positioning for themselves in the market and in a similar manner be
also able to ensure that they are successfully able to reach out to the targeted customers