Hi,

first, I wouldn't necessarily speak of concepts when relating to these words. These are just two words.

Capability means the ability to do something, for instance, "does company A have the capability to produce product B?" is synonymous with "does company A have the ability to produce product B?" In other words, "CAN company A produce product A?"

In contrast, capacity tells you about the maximum amount/extent something can do, contain, produce, etc., something. For instance, machine A can have a capacity of 2000 parts/min. So the outcome of having this machine producing parts is 2000 parts/min.

I hope this helps.

Regards,

Daniel

Hi,

Capability is a broad definition that refers to the differentiators the company can have:

• Cheap suppliers
• Intellectual property
• Unique contracts with distributors
• Economies of scale
• Talent
• Etc

Capacity usually refers to how much the company can produce. If the company has more capacity than anyone else on the market it's also a unique capability

Best

Capability: I am even able to do it (knowledge)

Capacity: Do I have bandwith

These two are often used interchangeably.

Hi A,

Capacity is actually a measure of your potential, while capability can be considered its limitation.

Your capability defines your capacity, not vice versa.

Best