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VRIO Analysis: Sanjay's Competitive Edge

Chapter 6 focuses on internal analysis through the lens of resources and competitive advantage, emphasizing the importance of understanding Porter’s Value Chain and the VRIO Framework. It discusses distinctive competencies, resource evaluation, and the implications of value, rarity, inimitability, and organization on competitive advantage. The chapter aims to equip students with the ability to analyze and categorize company assets for sustainable competitive advantage.

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11 views9 pages

VRIO Analysis: Sanjay's Competitive Edge

Chapter 6 focuses on internal analysis through the lens of resources and competitive advantage, emphasizing the importance of understanding Porter’s Value Chain and the VRIO Framework. It discusses distinctive competencies, resource evaluation, and the implications of value, rarity, inimitability, and organization on competitive advantage. The chapter aims to equip students with the ability to analyze and categorize company assets for sustainable competitive advantage.

Uploaded by

xinyu27403
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter 6

Internal Analysis: Resources and


Competitive Advantage
Lecturer

[Link] Rungruang
Chapter Objectives
After discuss this chapter, students must be able to
➢ Describe the responsibility of each function in Porter’s Value Chain
➢ Identify the pros and cons of in house and outsource for business activity
➢ Categorize company asset to distinctive competency types
➢ Analyze the VRIO Framework for sustainable competitive advantage.
Distinctive Competencies
Basic vs. Advance
Factors

3
Organizational Intellectual
ADVANCED FACTORS OF PRODUCTION
Process Knowledge
Architecture Property
• Knowledge of • The combination • Knowledge
the internal of • Research
rules, • Organizational • Information
procedures of an structure &
organization control systems
of
• Organizational
culture
• Human capital
and incentive
strategy

4
Resource Quality Evaluation:
The VRIO Framework
V : VALUE

R : RARITY

I : INIMITABILITY O : ORGANIZING
IS DIFFICULT TO IMITATE OR
RESOURCE EFFICIENTLY
TO CREATE READY
SUBSTITUTES FOR

20XX presentation title 5


Resource Quality Evaluation:
The VRIO Framework
(Value Creation and Profitability)
• The more value that consumers derive from a company’s goods or services, the
more pricing options that company has.

6
Resource Quality Evaluation:
The VRIO Framework
• Rarity
• Not widely possessed by other competitors
• Examples: superior technology, uniqueness
• The more exclusive a firm’s access to a particularly valuable resource, the greater the benefit for
having it.
• Inimitability
• Easily to imitate or to create ready substitutes for
• Examples: Brand, Superior service, Corporate reputation
• Any form of acquiring the lacking resource or substituting a similar resource that provides
equivalent benefits.
• Organizing resource efficiently
• Manage and control the usage of resources in the transformational process

7
Resource Quality Evaluation:
The VRIO Framework Analysis Table
Value Rarity Imitability Resource Competitive implication
organizing

1 value common Very easy Competitive


Disadvantage

1,2 Uncommon Medium Competitive Parity

Yes
1, 2 Rare Difficult Temporary Competitive
Advantage

3 or more Very Very Sustained Competitive


Advantage

8
Q&A

End of this
Chapter
Contents

20XX presentation title 9

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