When a company initiates a new project and examines it’s capabilities, it is found that the capabilities do not exist within the company. What are 2 common solutions to this? Provide some benefits for each solution. g

If the company has resources and the capability is essential and crucial to its competitive advantage, then it must go for developing the competency as it will bring in advantage. It will cost more as company will have to hire personnel for this but also its benefit will be translated into sustainable competitive advantage. Its advantages are permanent competency development and increased capabilities portfolio.

2. Outsource the capabilities

If the capability is not the core strength / capability of the company neither it wants to develop it in house. Company can go for outsourcing the capabilities for its new one time project and expects that the desired capability will not be required for permanent basis. It has benefit of low cost, outsourcing firm expertise and standardized services.