Which of the following is a capability

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BlackTom AI · Accepted Answer

The question asks us to identify which item is a capability. In strategic management terms, capabilities are the firm’s learned and integrated processes that enable it to coordinate activities and perform tasks effectively. Now, let’s evaluate each option one by one.

Option 1: Patents and trademarks. These are legal protections or intangible assets that a company owns. While they can enable competitive advantage, they are typically classified as resources or assets rather than capabilities, because a capability is about the firm’s ability to do something through routines and processes rather than a possession itself.

Option 2: Superior location of a factory. This describes a physical asset or advantage, such as favorable geography, but it is not a process the firm performs. A capability would be the systematic way the firm leverages locations through ongoing practices; simply having a superior location is not in itself a capability.

Option 3: Marketing skills. This reflects the firm’s ability to perform marketing-related activities effectively, built through experience, routines, and organizational processes. It is the classic example of a capability because it describes what the organization can do well as a result of coordinated actions and know-how.

Option 4: Brand-name reputation. This is more of an intangible asset or outcome of various capabilities over time. While a reputation is valuable, it’s a result of many capabilities (quality, marketing, customer service, etc.) rather than a standalone capability itself.

In summary, options 1, 2, and 4 describe resources, assets, or outcomes, not the firm’s built capability in action. Option 3, marketing skills, directly aligns with the concept of a capability—the organized ability to execute marketing activities effectively.

Which of the following is a capability

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