Capability Definition

Capabilities are the ability of an organisation, system or process to perform a function. They are often described in terms of what an organisation is able to do, e.g. its capacity, or how quickly it can do something.

In business, the term capability is often used interchangeably with core competency or competitive advantage. A core competency is a specific factor that gives a company an edge over its competitors in the marketplace.

A competitive advantage is a capability or set of capabilities that allow a company to outperform its rivals in the marketplace.