VRIO Framework

The VRIO Framework is a tool used to analyze a company's resources and capabilities to determine its competitive advantage. It stands for Value, Rarity, Imitability, and Organization. First, it checks if a resource adds value to the company. Next, it looks at whether that resource is rare and not easily found in competitors. Then, it evaluates how hard it is for others to imitate that resource. Finally, it examines if the company is organized to effectively use this resource. A positive assessment in all areas can lead to sustained competitive advantage and better performance in the market.