VRIO analysis template—organizations, use many strategic tools to understand the sources of their competitive advantages. Some devices are using for analyzing external environments (PEST analysis, Porter’s five forces), whereas some are used to analyze internal environments ( BCG Matrix, Mckinsey 7’s ). VRIO analysis is one among them targeting the internal analysis of a firm. VRIO analysis PowerPoint template will assist strategy presentation on the basis of four frameworks. The acronym VRIO stands for Value, Rarity, limit ability, and Organization. The model is based on the evaluation of the resources and capabilities of an organization. An American management strategist and professor Jay B. Barney has introduced the VRIO model theory based on competitive advantage.
Value: the first question of the model is; does a resource add value by allowing a firm to utilize opportunities or defend against threats. If the reply is yes, then a resource is considered valuable. VRIO value analysis is based on the value chain of the organization. It focuses how certain resources that tend to optimize the value chain.
Rarity: Resources that can only be attained by one or very few enterprises are considered rare. Rare and valuable resources award provisional competitive advantage. On the other hand, when more than few companies have the same help or similarly uses the capability, it leads to competitive similarity.
Inimitability: If a resource can be imitated comes down to how effortlessly an organization can substitute or copy a resource. For instance, you might be able to copy a particular feature in a product or a specific marketing tactic. Still, it’d be hard to copy a brand or extraordinary database of customer inclinations.
Organization: The resources themselves do not consult any benefit for a company if it’s not organized to capture the value from them. An organization must shape its management systems, procedures, rules, organizational structure, and culture to fully recognize the potential of its valuable, rare, and costly to copy possessions and competencies. Only then can the companies achieve continued competitive advantage.
VRIO analysis PowerPoint template is a professional business presentation diagram that enables the specialists to display their concepts by an editable ppt slide.