Dynamic capabilities

Dynamic capabilities are like a superhero's special powers that make them strong and ready to fight new enemies. In the same way, a company's dynamic capabilities are the special skills and strategies it has that enable it to adapt and succeed in a changing business environment.

Let's say you and your friends love to play soccer. Every time you play, you get better and better, and eventually, you learn new moves like dribbling, passing, and shooting. These skills make you a stronger player and help you win more games.

The same thing happens in a company. Dynamic capabilities are the skills and strategies that help companies win in a competitive marketplace. For example, a company that's good at innovation might be able to come up with new products faster than its competitors. A company that's good at collaboration might be able to work better together as a team.

So, dynamic capabilities are really just the skills and strategies that help a company stay strong and adaptable in a constantly changing business world.