Vrio

Vrio

VRIO, the VRIO framework, is an internal tool of analysis in the context of businesses. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitiability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability).
*The Question of Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?"
*The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?"
*The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?"
*The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?"

References

Barney, Jay B and Hesterly, William B. Strategic Management and Competitive Advantage: Concepts. 2005 Pearson Education, Inc., Upper Saddle River, New Jersey, 07458.

External links

* http://falcon.jmu.edu/~gallagsr/WDFPD-Internal.pdf
* http://www.ecofine.com/strategy/RBV%20of%20the%20firm.htm


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