Every question that needs to be answered is highlighted in yellow. Each answer must be a minimum of 2-3 sentences long. 

SWOT Analysis is a common method for analyzing a company or organization’s strategic position. But there are frameworks for more detailed analysis on a particular subset of factors, such as VRIO and PESTLE. In this media piece, you will conduct both types of analysis on the company you chose.

VRIO: Value, Rarity, Imitability, Organization

VRIO is a method for analyzing a company’s internal resources and abilities. It asks four questions, and the answers form a larger picture of the company or organization’s competitive position.

Use the VRIO method to write an analysis of the company you chose and its resources/abilities.

VRIO Diagram

As you can see in the diagram, a top row of circles shows the four questions. (Is the resource, capability, or competency Valuable, Rare, Costly to Imitate; and is the firm Organized to capture value?) An arrow from Valuable that says Yes leads to Rare, and an arrow from Rare that says Yes leads to Costly to Imitate, and so on. Arrows that say No lead from all four questions to outcomes. If the answers to all four questions are yes, that leads to a box that says Sustainable Competitive Advantage. But each “No” answer leads to a problem: Competitive Disadvantage, Competitive Parity, or only Temporary Competitive Advantage.

(2-3 sentence minimum for each)

V: The Question of Value Is your company able to exploit an opportunity or neutralize a threat with the resource/ability?

R: The Question of Rarity Is control of the ability or resource in the hands of few?

I: The Question of Imitability Is the resource or ability difficult to imitate? Would a company that was trying to imitate it face a cost disadvantage?

O: The Question of Organization Is the firm organized and ready to be able to take advantage of the resource or ability?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply