Structural capital

Structural capital refers to the things a company owns that make it successful. These things are not physical items, but rather non-tangible assets such as patents, technology, and intellectual property. It's like the secret recipe for a famous pizza chain or the technology that makes a website run smoothly.

Imagine a lemonade stand. The physical items like the lemonade machine and the cups are the company's physical capital, but the recipe for the lemonade and the knowledge of how to make it is the structural capital. This knowledge is what sets the lemonade stand apart from other lemonade stands and keeps customers coming back time and time again.

Structural capital is important for a company because it helps it create unique products and services that competitors cannot copy easily. It is also an important asset that can increase the company's value in the eyes of investors and potential buyers.

So, just like how a secret recipe can make a lemonade stand successful, a company's knowledge, ideas, and technology can make it a thriving business.