What is a capabilities system?

For capabilities to deploy their full potential they need to work in a system. Such a self-reinforcing system of capabilities is stronger than the sum of its parts and it is almost impossible for competitors to copy.

In this video we define what a capabilities system is by looking at Frito-Lay. We show how Frito-Lay combines its three differentiating capabilities of direct-store delivery, continuous innovation of new products, and consumer marketing into a powerful system that is at the heart of the company’s success.

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