Final answer:
The three fundamental tests for a strategically valuable capability are feasibility, competitive advantage, and sustainability.
Step-by-step explanation:
The three fundamental tests for a strategically valuable capability are:
- Feasibility: This test assesses whether the capability can be realistically achieved and implemented within the given resources and constraints. For example, if a company wants to enter a new market, they need to evaluate if they have the necessary infrastructure, resources, and expertise to do so successfully.
- Competitive Advantage: This test examines whether the capability provides a unique advantage over competitors. It involves analyzing factors such as market demand, customer preferences, and existing competition to determine if the capability can give the company an edge in the market.
- Sustainability: This test focuses on the long-term viability of the capability. It assesses whether the capability can be maintained and adapted to changes in the market, technology, and customer needs over time. A sustainable capability should be robust and adaptable.