Benefits and Ways to Achieve Dynamic Capabilities

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
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Author Note

1
STRATEGIC MANAGEMENT
Introduction:
The objective of this study is to look at the definition as well as benefits of dynamic
capabilities, and also the ways it can be planned or achieved. For this purpose, the case study of
HMD clinical has been analysed. The first question focuses on the benefits gained by HMD
clinical by attaining dynamic capabilities. Further through the answer of the rest three questions,
it has been shown that, collaboration with MNCs can be considered effective ways to achieve
dynamic capability. This study also focuses on other ways to plan or achieve dynamic capability.
Answer to Question 1:
From the case study of Easy Jet's 'No Frills' Strategy, it can be said that, the word
‘dynamic capability’ refers to the ability of a firm to build as well as reconfigure not only the
internal but also the external competencies for the purpose of coping with the constantly
changing business environment. Dynamic capability assists a company to achieve operational
capabilities. Another benefit of dynamic capability is that, it helps a firm in the creation,
extension as well as modification of resources. From the case study of HMD Clinical, it is
evident that, one of the most crucial benefits of ‘dynamic capability’ is to foster changes in the
product market domain of a company, and also the expansion and modification of the current
resource as well as capability configuration of a company. In a nutshell, it can be said that,
‘dynamic capability’, assist a company to foster necessary changes, in the product domain,
product line as well as the resource base and allocation, and facilitate a company to gain
competitive advantage.

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STRATEGIC MANAGEMENT
Answer to Question 2:
From the case study of Easy Jet's 'No Frills' Strategy, it can be said that, both the network
relationship and other kinds of strategic partnership between multinational companies can
contribute substantially to the development of dynamic capability. Network relationship
facilitates the modification as well as supply of the resources and paves the way for the
achievement of competitive advantage. For example, in the case study of HMD Clinical, the
firmHMD Clinical, has been able to gain dynamic capability andfoster changes in its product
market domain, and also expand and modify the configuration of resources as well as
capabilities, gain the potential sources of legitimacy, as well a resources and also the
opportunities of competitive advantage, only after, it is able to establish business networks by
partnering with Sun Microsystems which is a renowned multinational corporation based on
Scotland.
Answer to Question 3:
From the case study of HMD Clinical, it is evident that, collaboration with largely
established , companies that attempt outsourcing, collaboration with the companies that indulge
in the international trade, and also tying up with companies that support global sourcing, can be
considered as the other joint activities within, as well as across, organisations and countries,
other than the home country of HMD clinical, that could give rise to dynamic capabilities. This is
also evident in the case study of Easy Jet's 'No Frills' Strategy. The case study elaborating the 'No
Frills' Strategy of Easy Jet depicts that, global sourcing always supports variation in the product
domain as well as the better management of the supplyof productsor improved supply chain