VRIO Framework
By: A Staff Writer
Updated on: Jul 19, 2024
What: Analyzes internal resources to see if they can be a source of sustained competitive advantage. Stands for Valuable, Rare, Imitable (costly/difficult to copy), and Organized (is the business set up to exploit the resource).
Who: Jay Barney.
Why: Helps entrepreneurs identify the true drivers of success, focusing efforts and investments on what truly sets them apart.
When: During strategic planning and when evaluating potential new resources.
How:
- List your resources (tangible and intangible).
- Ask the VRIO questions about each one.
- Focus on strengthening resources that meet all the criteria.