VRIO stands for value, rarity, imitability and organization, which are the four lenses the VRIO framework uses to determine whether your organization has a competitive organizational strategy. It can help you audit the competitiveness of your business and find weaknesses in your
By analyzing your organization from these four perspectives, you’ll be able to determine whether your business provides value to customers in a way that’s rare and costly to imitate for your competitors. If so, you have a competitive business strategy that can be sustained over time.
Firmed resources can be tangible (e.g., cash, tools, inventory, etc.) or intangible (e.g., copyrights, trademarks, organizational culture, etc.). Whether these resources will actually help your business once you enter the market depends on four qualities:
Valuable: Will this resource either increase your revenue or decrease your costs and thereby create value for your business?
Rare: Are the resources you’re using rare or can others use your resources as well and therefore easily provide the same product or service?
Inimitable: Are your resources either inimitable or non-substitutable? In other words, how unique and complex are your resources?
Organizational: Are you organized enough to use your resources in a way that captures their value, rarity, and inimitability?
It’s important that your resources check all the boxes above so you can ensure that you have sustained competitive advantage over others in the industry.
Want to print your doc? This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
