VRIO Framework

Question 1

VRIO mnemonic

Answer 1

Value, rarity, inimitability, organisational support

Question 2

Value

Answer 2

Does it add value for customers or the organisation? If not valuable > no competitive advantage

Question 3

Rarity

Answer 3

Is it scarce? If competitors all have it > no competitive advantage

Question 4

Inimitability

Answer 4

Is it hard to imitate?

Question 5

Imitation barriers

Answer 5

Complex processes, culture and relationships, tacit knowledge, specialist skill, reputation

Question 6

Organisational support

Answer 6

Can the organisation exploit it properly? If not, even valuable resources are wasted

Question 7

Dynamic capabilities

Answer 7

An organisations ability to change, adapt, learn and innovate in response to fast-changing environments

Question 8

Examples of dynamic capabilities

Answer 8

Acquiring new skills, reconfiguring resources, mergers/absorbing new knowledge, rapid innovation cycles