You can do either a SWOT or Porter's Five forces to start with . Two important points are how to competitive Advantages and how to get a cost leadership 

Here is one of the most cited paper in this  area. 

DYNAMIC CAPABILITIES AND STRATEGIC

MANAGEMENT DAVID J. TEECE1*, GARY PISANO2 and AMY SHUEN3

1Haas School of Business, University of California, Berkeley, California, U.S.A.

2Graduate School of Business Administration, Harvard University, Boston, Massa-

chusetts, U.S.A.

3School of Business, San Jose State University, San Jose, California, U.S.A.

The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where

conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. ? 1997 by John Wiley & Sons, Ltd.

You can do either a SWOT or Porter's Five forces to start with . Two important points are how to competitive Advantages and how to get a cost leadership 

Here is one of the most cited paper in this  area. 

DYNAMIC CAPABILITIES AND STRATEGIC

MANAGEMENT DAVID J. TEECE1*, GARY PISANO2 and AMY SHUEN3

1Haas School of Business, University of California, Berkeley, California, U.S.A.

2Graduate School of Business Administration, Harvard University, Boston, Massa-

chusetts, U.S.A.

3School of Business, San Jose State University, San Jose, California, U.S.A.

The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where

conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. ? 1997 by John Wiley & Sons, Ltd.

The dynamic capabilities of any organisation is its  shifting character of the environment and its strategic ability of  appropriately adapting, integrating, and re-configuring internal and external organizational skills, resources, and functional competences toward changing environment. The following paper link may be useful in developing the construct forthe study

http://icc.oxfordjournals.org/content/3/3/537.2.short?rss=1&ssource=mfr

http://druid8.sit.aau.dk/acc_papers/jhatu9yugub1qmetvh4rvxeh7v5n.pdf

http://www.ejbss.com/Data/Sites/1/vol3no09december2015/ejbss-1502-14-theoreticalunderpinningsofdynamiccapabilities.pdf

 thanks

Dr. DS chaubey

Dear Alexey,

In addition to my agreement with Dr. Goutam Dutta, please check the following resources.

Regards

SM Najim

http://www.business.illinois.edu/josephm/BA545_Fall%202013/Teece,%20Pisano%20and%20Shuen%20(1997).pdf

http://eureka.sbs.ox.ac.uk/5728/1/CMR%20paper.pdf

http://www.sciencedirect.com/science/article/pii/S187704281505870X

http://www.hbs.edu/faculty/Publication%20Files/16-036_3be51325-1fb0-421a-afca-4571d958ebf9.pdf

http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6486.2006.00675.x/abstract

http://www.wiwiss.fu-berlin.de/forschung/pfadkolleg/_NEU_Downloads/schreyoegg_kliesch.pdf

Dynamic capabilities allow a company to reconfigure its assets in order to adapt to a changing environment.The influence of managers on the development of dynamic capabilities and the transferability of those capabilities to other companies to drives sustainable  competitive advantage is very critical. The Dynamic Capabilities Approach arose the 1990s to address missing gaps in the Resource-Based View commonly applied in the explanation for a competitive advantage. According to TEECE/PISANO/SHUEN (1997), sources of competitive advantage based

on capabilities inculcated in managerial and organisational processes. Processes determine how things are done in an organisation. Asset positions determined by the

intellectual property or complementary assets and the future strategic paths available

to an organisation, shape an enterprise's processes thereby influence the development of

dynamic capabilities. Certain factors could inhibit the emergence of dynamic

capabilities may be attributed to existing managerial beliefs.  Core capabilities are rooted in values that not only can develop, but also impede innovation in an organisation.

Excessive dynamic actions may lead to diversification failures.

Hi Alexey,

I met in a strategic management book (STRATEGR, Dunod éditions) a use of the value chain (M. Porter) and the Resource based view, to identify the organizational capacity to build a competitive advantage.

Regards