en0%6 RIO Analysis - ManagemertMaria.com Management Mania AppMunia + all + Knowledge + Events + People + Jobs + Companies + Products and services + Groups| + Books 99% KNOWLEDGE 2 EWS 59 EVENTS PEOPL 10 COMPANI VRIO Analysis Adtiole Discussion (0) Find similar posts ‘Auticle in PDF ‘What is VRIO Analysis ‘The VRIO Analysis is an analytical technique, which for each type of resource considers several evaluation dimensions for the organization as well as for its competitors. VRIO is an acronym from the initials of the names of the dimensions: Value, Rareness, Imitability, Organization, The VRIO Analysis was developed by Jay B. Bamey as a way of evaluating the resources of an ‘organization (company micro-environment) which are divided as follows: ‘© Material resources ‘* Nonmaterial resources (information, knowledge The VRIO Anelysis is an analytical technique which for each type of resource considers the following Do you have questions (evaluation dimension) for an organization as well as fo its competitors. VRIO is an aservice/ acronym from the first letters ofthe names of the dimensions: product that you would + Value - How expensive is the resource and how easy is it to obtain on the market (purchase, like to offer lease, rent)? here? + Rareness - How rare or limited isthe resource? ‘Add an offer + Imitability - How difficult is it to imitate the resource now + Organization, respectively arrangement - Is the resource supported by any existing. arrangements and can the organisation use it properly? We can do it How to use the VRIO Analysis in practice? ipssimaragemertmania com/en\rio-andiysis “4en0%6 RIO Analysis - ManagemertMaria.com ‘VRIO analysis isa complement to a PESTEL analysis (which assesses macro-environment). VRIO is Is this your used to assess the situation inside the oruanization (enterprise) - its resources, their competitive expertise? implication and possible potential for improvement in the given area or fora given resource. Such an assessment is then used for example in the strategic management of development in various areas or for decision making about the advantage of an external or internal process and the securing service (eg, Related ‘outsourcing decision publications + Ifthe resource is not valuable it should be outsourced because it brings no value t0 us + If the resource is valuable but not rare the company is in competitive conformity. It means we are not worse than our competition, + If the resource is valuable and rare but itis not expensive to imitate it, we have a temporary competitive advantage, Other companies will try to imitate it in the near future, then we lost our === competitiey advantage. ‘Megatrends + Ifthe resource is valuable, rare and is expensive to imitate it but we are no able t 2000 organizate our company, the resource become expensive for us (unused ineurred costs) inthis + if we can manage the advantacea and we are able to organize our company and temporary competitive advantage, it becomes as permanent competitive advantage their 1982 h beatseller, tusiness Megatrends eneyelopedia VRIO Model ‘Naisbitt and + Human Isvoluable? —srare?_——_ sfc. is Resources toimitate? organization Abuodene ‘Management organized Whatisthe rest? Mas + Economy & around? Trusted Finance Apvisor + Tnformation & ‘Sales * Production YES: ‘YES ‘YES ‘YES Per ea aL Beodacion QR ves UBB ves | rz = - Oli Managemen * Crisis Management In practic, the VRIO analysis is also used in combination with other analytical technigues to help organizational management evaluate business resources in a more detailed view. For financial ‘Management resources, there are many detailed financial indicators that evaluate the financial condition or + Process performance ofthe business from diferent perspectives. Likewise, human resourees, property or Management information are other detailed indicators oftheir performance, cliciency or quality. The advantage of @ + Scrise —— VRIO analysis sits simplicity and clarity. i Example of VRIO analysis from Starbucks + Risk Managemen i Management + ‘Suategic Peter E Management Drucker is ‘ourtmusted thou. rf + Public Sect more + Knowledge He E Ad hipssimaragemertmaria comlen\rio-andysis 2RIO Analysis - ManagemertMaria.com Create an VRIO Framework wource/capability, R 1 ° Blog posts oi Raine Capt Howto? (ofee Brewing Eaupment Professions Library ‘experience and ideas throu discussion Ccofee House Sete Employee Compensaton uaty Product Employee Bonet Soci Response Corporat mage ‘Buying Power Number of Cofee Houses [posers pr moran lcorpomt Leadenhip& Viton COOOCOCCOCOEE OEE a< eceeeeececeee Ceeoeecce Core Competencies Cooee Related terms and methods: SPACE Analysis SWOT Analysis Related personalities: + Jay B, Bamey Related management field: + Marketing and Sales + Organizational Management + Planning + Stategic Management Rating: (Only registered users can rate the article, Sign in Close. 6 0 Last update: 29.10.2015 Selected blog posts : Google translate Select Language | ¥ ‘Terms of Use hipssimaragemertmaria comlen\rio-andysis aaen0%6 RIO Analysis - ManagemertMaria.com General Conditions Limitation of Liability Terms and Conditions Claim How to + User profile Company Profile Business Tools Web traflie Price list Contacts + Editorial staff + Marketing + Technical support Partners + How to become a partner + Professional partners H a) ite El opacie ETS Copyright © 2011 - 2016 | M All rights reserved. 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