VRIO Analysis – Value, Rarity, Imitability and Organization

VRIO Analysis – Value, Rarity, Imitability and Organisation

Introduction

It is often important for organizations to know about the market position from time to time. Organizations should always look for answers to questions such as the following.

  • How is it performing compared to its competitor? Is the performance good or bad?
  • Do the skills and performance of employees contributing to the company’s success?
  • Is there any other factor that will help the company perform better?

Besides this, one should look for ways that contribute to the market position. Each and every organization has its own set of resources that vary from one company to the other. Some of the common resources include people, physical assets, and processes and so on. All these resources play a very important role in the business success. One needs to evaluate the potential and effectiveness of different resources on an ongoing basis to build a competitive edge.

About VRIO Framework

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