Dynamic Capabilities Of Boeing

On analysis of Boeing it is clear that there is evidence of all three key dynamic capabilities, this is due to the fact that they are both creative and innovative. However I will discuss how some of these capabilities are not utilized effectively by Boeing. Teece (1997) argues that in order for an organization to sustain competitive advantage they must propose certain capabilities which are dynamic in origin. Dynamic capabilities can be defined as “the firm 's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments (Teece, 1997). There are three key dynamic capabilities that I am going to address which include Integration of new assets, profound learning and reintegration of existing assets.

The integrating of new assets is the ability to identify valuable or previously external assets to improve firm performance. An example of Boeing integrating assets can be seen in regards to their acquisitions. Boeing is over 100 years old and has outlived majority of its competitors while also consuming some of them through acquisitions such as North American aviation, Piasedki Helicopter and McDonnell Douglas. Boeing have increased their competitive advantage and have spread across the world through mergers and acquisitions, for example acquisition of McDonnell Douglas is how they came to St.Louis. This deal made Boeing the most powerful aerospace company in the world (Catchpole et al., 2016). Another more recent example