Dynamic capabilities refer to a company's ability to adapt, integrate, and reconfigure its resources and competencies in response to changing market conditions. This concept emphasizes the importance of flexibility and innovation, allowing organizations to remain competitive in a rapidly evolving environment. These capabilities enable firms to sense opportunities and threats, seize them effectively, and transform their operations accordingly. By developing dynamic capabilities, companies can enhance their resilience and ensure long-term success, making them better equipped to navigate challenges and capitalize on new trends in their industry.