Irving Wladawsky-Berger, longtime IBM strategist and MIT visiting lecturer, teaches this session of ESD.57, Technology-Based Business Transformation, on how companies build strategy by assessing their own internal capabilities. He covers the standard toolkit for internal analysis, including resource and capability audits, core competencies, and value chain thinking, and connects these frameworks to real decisions companies face when technology shifts the basis of competition. The lecture runs long enough to work through multiple frameworks in sequence, with Wladawsky-Berger drawing on his own corporate experience to illustrate how firms diagnose their strengths and weaknesses before committing to a strategic direction. This is a business strategy course lecture rather than a case study screening, aimed at students who already have the basic vocabulary of strategy formulation and are ready to apply it to technology-driven industry change.