Barney's VRIO Framework

Barney's VRIO Framework is a tool used to evaluate a company's resources and capabilities to determine if they provide a sustained competitive advantage. VRIO stands for Value, Rarity, Imitability, and Organization. A resource is valuable if it helps the company exploit opportunities or defend against threats. It is rare if few competitors have it. Imitability considers how difficult it is for competitors to copy. Finally, the organization aspect assesses whether the company is structured to fully leverage the resource. Together, these elements help identify which assets truly give a company a long-term competitive edge.