VRIO Analysis

VRIO Framework Template

To use our VRIO framework template, you need to take 3 steps: add the required data, choose the design, and download the result.

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🧶 How to Use VRIO Framework Tool

This VRIO framework template is a real find! Take the 3 steps below to get a customized report:

  1. Add the required data. Fill in the empty fields based on your findings about the company’s resources.
  2. Choose your favorite design. Pick the font, the arrangement, and the color scheme of your future table.
  3. Download the result. You can choose docx, pdf, png, or jpeg format for free.

🔎 VRIO Framework Definition

VRIO framework is a tool that analyzes the competitive advantages of a company and its resources. To get a full picture, you can study the products or services of the company. VRIO analysis helps to understand the essential aspects for a company to maintain or obtain a sustainable competitive advantage.

The acronym VRIO stands for the following:

V Value Indicates how the service or product is useful to the target market.
R Rarity Describes the uniqueness of the resources the company provides.
I Imitability Analyzes the similar or alike products on the market.
O Organization Studies the operational processes and management systems of the company.

What Is VRIO Framework?

VRIO framework is an analysis of a business categorizing its recourses by four traits. Its main goal is to find a sustainable competitive advantage that makes the company stand out in the market. VRIO framework is used for:

How to Use the VRIO Framework?

  1. Read some real-life examples to understand how the framework works.
  2. Choose the product or service (or several) you need to analyze.
  3. Research each item within the four assessment cat:egories
  4. Evaluate the service or product based on your findings.

You can combine VRIO with SWOT, PESTEL, SOAR, or Porter's Five Forces analysis for more effectiveness.

How to Create a VRIO Framework for a Company?

To create a VRIO framework for a company, you have to analyze the company, its service or product, and its competitors. You can use Excel, Word, or an automatic tool to organize the gathered knowledge before you present it.

Who Created VRIO Framework?

Jay Barney created the VRIO framework in 1991. He is an American professor at the University of Utah and a strategic management expert. The first version of VRIO was actually VRIN and was a little bit different. It stands for valuable, rare, imperfectly imitable, and non-substitutable. In 1995, he updated it to VRIO.

🐣 VRIO Framework Template for Beginners

Follow these steps to conduct the VRIO analysis:

  1. Identify the scope of research. Choose the company, its products, and the time frame for your analysis. For the first time, it’s better to pick a well-known corporation like Apple. You will easily find all the required data. You can combine the VRIO system with the value chain, which will benefit the internal analysis.
  2. Conduct the analysis. After you’ve collected all the necessary information, evaluate the company. Decide which questions you want to answer them. For example:
    • Value: Does the company have a recognizable and respected brand?
    • Rarity: How easily can competitors of the company obtain its resource?
    • Imitability: Does the resource have duplicates or substitutes?
    • Organization: Is the company’s hierarchy flexible and ready for implementing change?
  3. Review your findings. The situation in modern markets can change rapidly. Monitor the news in the analyzed industry and be ready to adjust a few details in your work.

✨ VRIO Framework Template – Free Example

Let’s describe Nike, Inc. using the VRIO framework.

Here’s an analysis example:

  1. Value. The company is valued as it holds leading positions in the market. It has a strong brand image and introduces innovative products.
  2. Rarity. As one of the market’s leaders, Nike has a rare brand image. However, its products and services are pretty similar to what its competitors offer.
  3. Imitability. It is rather hard to imitate Nike products while maintaining the same quality. Some competitors introduce similar designs and technologies. Also, some manufacturers produce fake Nike items that replicate the original products.
  4. Organization. Nike is a multinational company that operates in almost every country. It outsources production to Asia and sells the products worldwide. It uses a matrix organizational structure with teams divided by products.

✍ VRIO Analysis Essay Examples

In the below section, you’ll find a list of essay examples that use VRIO framework to analyze various businesses. Use them for reference and inspiration.

🖇️ References

  1. VRIO Framework: What it is, Tips & Advantages | QuestionPro
  2. VRIO Analysis; Strategic Management
  3. VRIO Framework Overview: Analysis & Examples