Firm capabilities, or what firms do well, underlie the extent to which a firm can implement its chosen strategy using its dominant logic. Capabilities include both threshold or hygiene capabilities (those that are essential for a firm to compete) and core capabilities (those that allow a firm to win); a variety of tangible and intangible resources underlie both these types of capabilities. Capabilities differ both how easily others can copy them and how much value they create for the firm. Identifying the real capabilities of a firm can lead to successful strategy implementation.