What term refers to internal capabilities that give a business an advantage over competitors?

• A. Weaknesses
• B. Strengths
• C. Capabilities
• D. Resources

Answer: (B)

Internal strengths are the attributes a company has that help it outperform rivals. In strategic planning, identifying strengths means looking at what the firm does well and can leverage to gain an edge over competitors. These are internal capabilities that translate into real value, such as a strong brand, proprietary technology, efficient operations, or excellent customer relationships.

Resources are the assets the company owns, like equipment or cash, and capability refers to the organization’s ability to deploy and coordinate those assets through processes. While resources and capabilities are essential, the term that specifically captures the advantage over competitors is strengths—the positive, advantageous traits the firm can capitalize on.