Kay’s Distinctive Capabilities

Question 1

What is distinctive capability?

Answer 1

When a business gains a point of differentiation that is difficult to be replicated by a competitor

Question 2

What is Kay’s 3 distinctive capabilities?

Answer 2

Architecture (e.g. leadership, business operations)
Innovation (e.g. new products, first mover advantage)
Reputation (e.g. ethics, quality of goods + services)

Question 3

What are the main outcomes of Kay’s 3 distinctive capabilities?

Answer 3

Differentiation, leading to competitive advantage, allowing for:
+ gain market share
+ charge higher prices
+ enter new markets
+ stand out in competitive market

Question 4

4 Components of Boston Matrix

Answer 4

Rising Star
Cash Cow
Problem Child
Dog

Question 5

Describe rising star in the Boston matrix

Answer 5

High market growth, high market share

Question 6

Describe problem child in Boston matrix

Answer 6

High market growth, low market share

Question 7

Describe cash cow in Boston matrix

Answer 7

Low market growth, high market share

Question 8

Describe dog in Boston matrix

Answer 8

Low market growth, low market share