VRIO Framework

Question 1

Valuable?

Answer 1

Ability to exploit external opportunities or offset external threat - increase value creation

Question 2

Durable?

Answer 2

Rate at which resource becomes obsolete/commoditised (rarity is part of durability)

Question 3

Hard to copy + non-substitutable?

Answer 3

Expensive to develop or procure at reasonable costs

Question 4

Organised to capture value?

Answer 4

Efficient organisational structure and coordinating system to recognise resource that contributes to core competencies

Question 5

Methods to defend and sustain core competency? (BPCSI)

Answer 5

Better expectation of future value,
Path dependence,
Casual ambiguity,
Social complexity,
IP protection