Dynamic Capabilities

Dynamic capabilities refer to a company's ability to sense opportunities and threats in the environment, effectively adapt, and reconfigure resources and skills to stay competitive. Think of it like a business’s agility and foresight—how well it can innovate, learn, and adjust strategies in response to changing market conditions. This helps organizations not just survive but thrive amid rapid technological advances, evolving customer needs, or new competitors. Essentially, dynamic capabilities are the company's skill set for continuous renewal and strategic adaptation in a dynamic world.