According to the dynamic capabilities perspective, Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment. The essence of dynamic capabilities perspective is that competitive advantage is not derived from static resource or market advantages, but from a dynamic reconfiguration of a firm's resource base. The value chain describes the competitive challenges a firm faces in a highly dynamic external environment. internal activities a firm engages in when transforming inputs into outputs. current consequences a firm experiences due to its decisions in the past. strategic advantages a firm experiences when its resources lack causal ambiguity