Capabilities are differentiators that improve a company’s ability to compete in the marketplace. In order for them to work in an efficient way, capabilities need to be part of a system stronger than the sum of its parts, and almost impossible for competitors to copy.

Watch this video by Strategy& define to learn what capabilities system is by looking at an example of a company that has one in place: Frito-Lay. You’ll discover how Frito-Lay combines its three differentiating capabilities of direct-store delivery, continuous innovation of new products, and consumer marketing into a powerful system that is at the heart of the company’s success.