Capabilities refer to the skills, resources, and abilities that an individual, organization, or system possesses to perform specific tasks or functions. These can include technical skills, knowledge, and tools that enable effective performance in various activities. For example, a company may have capabilities in software development or customer service that allow it to meet market demands. In a broader context, capabilities can also relate to the potential for growth and adaptation. Organizations often assess their capabilities to identify strengths and weaknesses, which helps in strategic planning. This evaluation can lead to improved efficiency and innovation, ultimately enhancing competitiveness in the market.