Vrio Analysis

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VRIO analysis is a suitable strategic tool that is essential in evaluating the sustainability of a corporation’s competitive advantage. By analyzing the capabilities and resources of a firm, the management is able to identify the suitable approaches of increasing the firm’s market share and broadening the consumer base. One of the key elements encompassed in the VRIO framework entails the value of the identified capabilities and resources. In order to acquire a sustainable competitive advantage over other participants in the targeted market, a company ought to focus on the resources that increase a firm’s value. This includes the firm’s ability to exploit the available business opportunities and mitigate the potential risks. A company…show more content…
Are the resources rare? Are the resources costly to imitate? Does the resources organization aid in mitigating business risks and maximizing the available opportunities? Yes Yes Yes Yes Table 2: VRIO Analysis on True Religion Apparel Inc.’s Research Management Approach Are the resources valuable? Are the resources rare? Are the resources costly to imitate? Does the resources organization aid in mitigating business risks and maximizing the available opportunities? Yes No No Yes Table 3: SodaStream International’s Revenue in Comparison to its Competitors Company 2010 2012 Difference Dr Pepper Snapple Group $ 137.3 $ 148.1 $ 6.47 PepsiCo $ 236.7 $ 341.9 $ 8.31 SodaStream $ 41 $ 158

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