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When comparing the resources a company has at its disposal, the capacity to innovate or a positive reputation, both of which are intangible, would be an inferior source of capabilities and core competencies than tangible resources such as copyrights, patents, and the ability to generate funds

Value consists of a product’s:

The proper matching of what a firm CAN DO with what it MIGHT DO:

At a technology firm, human capital would be critical to forming and using the firm’s capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services

When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in:

The trust that a firm has built between itself and its suppliers is an example of a costly-to-imitate capability that other firms cannot easily develop

A competitive advantage:

One criterion for a resource or capability to be a source of competitive advantage is that it must allow the firm to perform a value-creating activity that competitors cannot perform

Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment

Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals