Question

Approaches to Building and Strengthening Capabilities:

1) Discuss different ways to build/strengthen capabilities

2) What are some examples of companies that have used some of these methods? explain

Answer 1

Different ways to build/strengthen capabilities include:

1. Develop capabilities internally: In this strategy, some managerial actions are taken to strengthen the capabilities internally. It includes strengthening the firm's base of skill and knowledge by focusing on the training and development of the employees. Co-ordination among team members is established to develop competency and build capabilities.

2. Acquire through mergers and acquisitions: capabilities can be acquired through mergers and acquisitions of other firms. When the market is so competitive and creating capabilities internally is no longer beneficial, companies focus on building such capabilities by emerging with other units and firms.

3. Access via collaboration: there are various approaches for building capabilities via partnership and collaboration. The first one is by outsourcing the facing that requires the capabilities of a key supplier or partner. Collaboration with another company that has the core competency and capabilities is the second approach and engaging with a view to laarn how the partner does things is the last approach for building capabilities.