What Is The Vrio Framework - 846 Words

1. What is the VRIO framework? What are the attributes in this tool? First of all, I didn’t know about the VRIO framework before, so I wanted to learn a lot from this part. In page 50, Jay Barney states â€Å"one of the pioneers of the resource-based view of the firm, we call this model the VRIO framework.† In other words, VRIO framework is a tool for analyzing the firm’s internal capabilities and resources include sustained competitive advantage. There are many tools to do internal analysis like Value Chain analysis, BCG Matrix and etc. This VRIO framework is one of the tools to identify the firm’s resources based on the four attributes: †¢ Valuable (V): Does resource add value to enable a firm to exploit opportunities/ threats? If the resource is valuable, it increases the perceived value of the firm’s product or service (lower the prices, add the attractive features). †¢ Rare (R): If a resource is rare and valuable, it grants temporary competitive advantage. But rare resource that can only be acquired by few companies. †¢ In the textbook page 67, the description of the rare is â€Å"if the number of firms that possess it is less than the number of firms it would require reaching a state of perfect competition.† †¢ Costly to imitate (I): If other firms do not have and also cannot be imitated, buy or substitute a resource at a reasonable price, this resource, it is costly to imitate. Because the limitation may occur either duplicating the resource or, substituting the comparableShow MoreRelatedQuestions1478 Words   |  6 PagesQuestions 1. Why has the pharmaceutical industry been so successful historically? 2. What is your assessment of the pharmaceutical industry at the time of the case? How is competition changing? What factors are driving the changes? 3. What will competition in pharmaceuticals look like in 10 years? 4. What is your assessment of Pfizer’s position in the industry? What are the keys to success in the industry? 5. What recommendations would you make to Kindler? Wal-Mart Stores, Inc. The story of Wal-Mart’sRead MoreEvaluating Sainsbury s Resources And Capabilities Also For The Future Movement1725 Words   |  7 PagesIntroduction This report aims to evaluate Sainsbury’s policies in Egypt by implementing several frameworks such as SWOT, VRIO and PESTEL analysis, and FDI (Greenfield, Joint venture, Franchising). This report is using former evaluating tools in order to diagnose Sainsbury’s resources and capabilities also for the future movement in Egypt. [1]Analysis of internal environment [SWOT AND VRIO] 1-1 SWOT SWOT analysis is a useful method to investigate internal environment. By implementing SWOT as anRead MoreWal Mart s Core Competencies Essay1649 Words   |  7 Pages There is a growing body of literature that recognises the importance of Resource Based View (RBV) in strategic management. This paper attempts to identify Wal-Mart’s core competencies, applying RBV literature such as VRIO framework with supporting evidence from â€Å"Wal-Mart Stores in 2003† case study. RBV suggests that each firm acquires a collection of capabilities, which can be mobilised by strategists to gain competitive advantage (McGee et al., 2005). In other words, a firm can be viewed as a bundleRead MoreMichael Hill1377 Words   |  6 Pagesthat are not available to other jewellers. (Michael Hill Company History) VRIO Framework The VRIO framework looks at a company as a bundle of resources some of which are rare or costly to produce. If some resources in this bundle create value, are rare, and costly to produce then as long as the company is set up to exploit this, a sustained competitive advantage will be created. (Barney, 1997, p. 142) The VRIO framework analyses the competencies of an organisation and ask the following questions: Read MoreVrio for Kfc933 Words   |  4 PagesVRIO Framework of KFC VRIO framework use to find out the core competencies or sustainable competitive advantages which are helping firm to operate profitably in long term. For KFC, we try to find out its competitive advantage where we used four key components which help to identify in what KFC have competitive advantage compare to its competitors. Resources Valuable Rare Inimitable Exploited by the Organization Brand ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ Recipe ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ ïÆ' ¼ Experience ïÆ' ¼ X X ïÆ' ¼ Location ïÆ' ¼ X X ïÆ' ¼ Price ïÆ' ¼ X X ïÆ' ¼ Read MoreEvaluation Of Targets Vrio Framework And Capabilities Of A Firm1038 Words   |  5 PagesVRIO Framework The VRIO framework evaluates resources and capabilities of a firm. Below is the evaluation of Targets VRIO framework. Sustainable Competitive Advantage At this particular time Target does not have a sustainable competitive advantage in the home dà ©cor department. Target has not used its revenue to go towards Research and Development for the Home Dà ©cor Department. Targets current Sustainable Competitive Advantage (SCA) would be the â€Å"Pay Less and Expect More† aspect of the mission statementRead MoreEssay on V.R.I.O. Analysis1145 Words   |  5 PagesA FRAMEWORK FOR ANALYSIS : VRIO • Resource-based analysis of the firm determines which resources and capabilities result in which strengths or weaknesses • Strategies are to be implemented which exploit (or build) strengths and avoid (or eliminate) weaknesses • What constitutes a strength or weakness is partially a function of the external environment • Framework for analysis: VRIO - resources and capabilities should be o Valuable o Rare o Inimitable o Organization can effectively exploitRead MoreCase Study : Apple Inc.1594 Words   |  7 Pagesto a few contributing dynamics that give the firm a competitive advantage. In this paper I will outline what has led to Apple Inc.’s success by analyzing the firm through Michael Porter’s five forces, the VRIO framework, culture and ethics within the organization and business alliances. Porter’s Five Forces Analysis According to Peng, M. W. (2014), â€Å"Michael Porter’s five forces is a framework governing the competitiveness of an industry by: the intensity if rivalry among competitors, the threatRead MoreV.R.I.O. Analysis1244 Words   |  5 PagesA FRAMEWORK FOR ANALYSIS : VRIO • Resource-based analysis of the firm determines which resources and capabilities result in which strengths or weaknesses • Strategies are to be implemented which exploit (or build) strengths and avoid (or eliminate) weaknesses • What constitutes a strength or weakness is partially a function of the external environment • Framework for analysis: VRIO - resources and capabilities should be o Valuable o Rare o Inimitable o Organization can effectively exploitRead MoreHuman Resource Management And Retail Banking1317 Words   |  6 Pagesrepresentatives to inform the client of all the services and products that Regions offers. In addition, the employee cannot just open an account and get paid, but must ensure that that service or product is used by the client. Thus, the employee is aware of what the clients wants and needs in order to offer a product or service accordingly. Based on reviews and rating from both past and present employees around the country from various websites such as glassdoor.com and indeed.com, the recurring reviews