Company acquires and sustains the resources providing the competitive advantage through dynamic capabilities

Because Company has competitive advantage due to Valuable, Rare, Difficult to Imitate, and Supported by Organization resources, the key is to:

1. Identify those resources
2. Acquire them
3. Leverage them

In other words, the strategy should not be guided by industry conditions, which are not very relevant, but guided by resources evaluation and acquisition.

Although there is no permanent competitive advantage as resources may:

• Lose in value
• Become more common
• Imitation is developed
• They are no longer supported by organization

due to changing environment, the sustained competitive advantage is possible by dynamic capabilities that change the resource base to maintain the competitive advantage providing qualities.

Dynamic capabilities adjust resources by integration, reconfiguration, and gain and release.

Note that dynamic capabilities in themselves are not a resource that will provide the competitive advantage because they are only

• Valuable - they help acquire resources that will help to tend to customer needs
• Rare - they are idiosyncratic

but not

• Difficult to Imitate - there are many ways to develop dynamic capabilities yielding similar results (equifinality), for example best practices exist and are widely shared such as cross-functional teams, agile, lean six sigma.

The usage of the dynamic capabilities depends on managers, which are responsible for sensing opportunities and threats, and exploiting & renewing resources.