Internal and External Analyses
A question summarizing VRIO resource. The tool was originally developed by Barney, J.
According to him, the resources must be valuable, rare, imperfectly imitable and non-substitutable. His original framework was called VRIN. VRIO analysis stands for four questions that ask if a resource is: And is a firm organized to capture the value of the resources?
A resource or capability that meets all four requirements can bring sustained competitive advantage for the company. If the answer is yes, then a resource is considered valuable. Resources are also valuable if they help organizations to increase the perceived customer value.
The resources that cannot meet this condition, lead to competitive disadvantage. It is important to continually review the value of the resources because constantly changing internal or external conditions can make them less valuable or useless at all.
Rare Resources that can only be acquired by one or very few companies are considered rare. Rare and valuable resources grant temporary competitive advantage.
On the other hand, the situation when more than few companies have the same resource or uses the capability in the similar way, leads to competitive parity.
This is because firms can use identical resources to implement the same strategies and no organization can achieve superior performance. Even though competitive parity is not the desired position, a firm should not neglect the resources that are valuable but common.
Losing valuable resources and capabilities would hurt an organization because they are essential for staying in the market. Imitation can occur in two ways: A firm that has valuable, rare and costly to imitate resources can but not necessarily will achieve sustained competitive advantage.
Barney has identified three reasons why resources can be hard to imitate: Resources that were developed due to historical events or over a long period usually are costly to imitate. A firm must organize its management systems, processes, policies, organizational structure and culture to be able to fully realize the potential of its valuable, rare and costly to imitate resources and capabilities.Transcript of MGMT Microsoft and Nokia.
Case Outline Introduction and Case Overview Situation Analysis Internal Analysis Resources and Capabilities VRIO Framework Value Chain Analysis Issues and Recommendations Ethics and CSR Conclusion: Future Prospects Reference List.
Nokia and Microsoft Partnership Analysis Introduction: Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used.
Vrio Analysis Of Nokia. VRIO The VRIO framework is a set of four questions of: Value, Rarity, Imitability, andOrganization (Barney and Hesterly, ). It is a tool to analyze company’s resourcesand capabilities to discover their potential competitive advantages or to identifycompany’s internal weaknesses (Barney and Hesterly, ).
Vrio Analysis Nokia, Amazon Shai Zamir, Dan Saguy Words | 9 Pages. Strategy Assignment 2 Internal Analysis - VRIO Shai Zamir Dan Saguy Introduction, Inc. is an American multinational electronic commerce company in the online retail market.
Vrio Framework Of Nokia. VRIO The VRIO framework is a set of four questions of: Value, Rarity, Imitability, andOrganization (Barney and Hesterly, ). It is a tool to analyze company’s resourcesand capabilities to discover their potential competitive advantages or to identifycompany’s internal weaknesses (Barney and Hesterly, ).
Apr 18, · VRIO Analysis is an analytical technique briliant for the evaluation of company’s resources and thus the competitive advantage.
VRIO is an acronym from the initials of the names of the evaluation dimensions: Value, Rareness, Imitability, Organization/5(K).