KOLEHIYO NG LUNGSOD NG

LIPA
MARAOUY, LIPA CITY

RBV- Analysis
VRIO worksheet

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
Barney and Hesterly (2006), describe the VRIO framework as a
MARAOUY, LIPA CITY

good tool to examine the internal environment of a firm. They state

that VRIO stands for four questions one must ask about a
resource or capability to determine its competitive potential:
The Question of Value: Does a resource enable a firm to exploit
an environmental opportunity, and/or neutralize an environmental
threat?
The Question of Rarity: Is a resource currently controlled by only
a small number of competing firms? [are the resources used to
make the products/services or the products/services themselves
rare?
.

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY

The Question of Imitability: do firms without a resource face a

cost disadvantage in obtaining or developing it.
The Question of Organization: Are a firms other policies and
procedures organized to support the exploitation of its valuable,
rare, and costly-to-imitate resources?
.

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY

Is the
Is the value of the
Resource or Is the Resource or
resources and Is the Capability capability Easy capability organized
capabilities High or or Resource
or Difficult to (exploit for efficient
Low
Rare
Imitate
use)
(H/L)

(Yes/No)

(Easy/Difficult)

Implications

(Yes/No)

No competitive advantage. Most competitors have the

resource and capabiliTY and those thast do not can
develop it easily. All can sustain it.

No competitive advantage. All competitors have the

resource or capability which is easily developed.Reource
or Capabiity can not be sustained and represents a short
term advantage.

No competitive advantage.Many competitors have the

resource or capability. but is difficult to develop.
Resource or capability should be well taken cared of

No competitive advantage.Many competitors have the

resource or capability. but is difficult to develop. Those
who possess the Resource or capability will not be able to
sustain. Only a short term advantage

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY

Is the
Is the value of the
Resource or
Is the Resource or
resources and
Is the Capability capability Easy capability organized
capabilities High or or Resource
or Difficult to (exploit for efficient
Low
Rare
Imitate
use)
(H/L)

(Yes/No)

(Easy/Difficult)

Implications

(Yes/No)

Not a source of long term competitive advantage.

Competitors have the tendency to imitate the
resource or capability . Strategies must not be based
on this resource or capability

A source of short term advantage, Resource or

capabilities can be imitated easily and therefore can
not be sustained. Strategies may not be based on
these resources

A source of long term competitive advantage. It is

worth "betting the organization"with this resource or
capability

Possible source of Long term competitive

advantage . But the resource or capability can not be
sustained over the long run

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable
(H/L)

Rare
(Yes/No)

Imitability
(Easy/Difficult)

Organization
(Yes/No)

Implications

Physical
Plant
Equipment
Assets
Technology

Raw materials

Technological
Proprietary technology (patents,
copyrights etc.)
Application of technology (knowhow)
Human
Skills, expertise
Adaptability of employees
Commitment and loyalty of
employees

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

Reputation
Brand ownership
Relationship with customers
Products/services
With community, authorities
With suppliers

With employees

CAPABILITIES
Management
Financial management
Strategic control
Coordination of business units
Resource management
Partnership management
Other

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

R&D
Basic research
Innovation in new
products/services
Other
Marketing

Responsiveness to market trends

Promotion of quality
Brand management
Other
Sales
Quality of customer service
Effectiveness in executing sales
Other

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

Information management
Information system which is
comprehensive and
effective
Other

Management
12/04/16

marie joahnna m.. aranda

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

Management
12/04/16

marie joahnna m.. aranda

10

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

Management
12/04/16

marie joahnna m.. aranda

11

KOLEHIYO NG LUNGSOD NG
LIPA
MARAOUY, LIPA CITY
RESOURCES

Valuable

Rare

Imitability

Organization

(H/L)

(Yes/No)

(Easy/Difficult)

(Yes/No)

Implications

Management
12/04/16

marie joahnna m.. aranda

12