VRIO analysis is a strategic framework used to evaluate an organization’s internal resources and capabilities to determine their potential for creating sustainable competitive advantages.
The acronym VRIO stands for Value, Rarity, Imitability, and Organization, representing four key elements that assess a company’s competitive position.
Core Components
Value A resource must help a company exploit market opportunities or neutralize threats to be considered valuable. This involves evaluating market relevance, operational impact, and strategic alignment.
Rarity This element assesses whether a resource or capability is unique and controlled by few competitors.
Imitability This component examines how difficult or costly it would be for competitors to duplicate or substitute the resource.
Organization This final element evaluates whether a company is structured to fully exploit its resources and capabilities.
Analysis Process
