VRIO is a business analysis framework that forms part of a firm's larger strategic scheme, proposed by Jay Barney in 1991. The basic strategic process of any firm begins with a vision statement, and continues on through objectives, internal & external analysis, strategic choices (both business-level and corporate-level), and strategic implementation.
VRIO falls into the internal analysis step of these procedures, but is used as a framework in evaluating just about all resources and capabilities of a firm, regardless of what phase of the strategic model it falls under.
VRIO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (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?" "Is the firm organized to capture value?"[1]
^"VRIO Framework Explained – SM Insight". 7 October 2021.
VRIO is a business analysis framework that forms part of a firm's larger strategic scheme, proposed by Jay Barney in 1991. The basic strategic process...
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model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
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model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
model PEST analysis • Growth–share matrix STP • MECE principle Business Model Canvas • Kraljic matrix Strategic Grid Model • Strategy map • VRIO v t e...
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