ABSTRACT
The success rate of an organization over the long term depends upon its abilities of how effectively it can exploit the current environment and also how it deploys its current capabilities to develop new competencies in a dynamic environment. Studies of companies reveal that while firms may do a fabulous job in bringing out refinements in their product-market offerings, the same organizations tend to falter when it comes to coming up with development of radically new products and services. A rich illustration on L&T details how distinct dynamic capabilities can help a company succeed in both existing and new businesses. The concept of dynamic capability is a powerful lens to understand the processes of "sensing" and "seizing" opportunities as well as the process of building sustainable competitive advantage for firms. Dynamic capabilities can include processes like product development, developing collaborative alliances, etc. The patterns of dynamic capabilities are likely to vary with market dynamism.
