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The Dynamic Capabilities View emerged from the work of several researchers, aiming to
provide an explanation for a firm’s success in a fast-changing environment. This Thesis
strives for the analysis of the Dynamic Capabilities literature through the real life business
history of Priceline.com, an online travel agency founded in United States. The case shows
that the company has a high propensity to sense opportunities and threats, to make
market oriented decisions and to change their resources base while having a medium
propensity to make timely decisions. In addition, evidence suggests that dynamic
capabilities were key for the Priceline.com's success within a fast-changing environment,
giving support to the literature that defines Dynamic Capabilities as the “firm’s potential to
systematically solve problems”.