The VRIO framework is a tool for analyzing a company's internal resources and capabilities to see if they can be a source of sustained competitive advantage. Each letter in VRIO stands for a different aspect of this analysis: Value, Rarity, Imitability, and Organization. 'Value' refers to whether a resource enables a firm to exploit an environmental opportunity or neutralize an environmental threat. 'Rarity' is about whether a resource is possessed by one or few companies. 'Imitability' refers to how easily competitors can duplicate the resource. 'Organization' is about whether a company is organized to exploit the resource. If a resource or capability meets all four of these criteria, it can be a source of sustained competitive advantage.
How do you know if a venture is worth your time, investment, and resources? Value, rareness, imitabi...
Download template