VRIO Analysis
The VRIO Analysis is used to assess the strength of the company's core competencies.
The VRIO analysiswasdeveloped by Jay B. Barney, an American professor of strategic management at the University of Utah. The model waspublished in the Journal of Management in 1991, Vol. 17, No. 1, 99-120. The titel of the article is ”Firm resources and SustainedCompetitive Advantage”. The VRIO analysis is part of a resource-basedtheory, which is a perspectivethatexamines the relationshipbetween a company'sinternalcharacteristics and its performance. Proponents of the resource-basedtheoryarguethat an organizationshouldinvestigate the company to find the sources of competitiveadvantageinstead of looking at the externalcompetitiveenvironment. VRIO is thus a complementary model to Porter'sFive Forces, which looks more at external factors such as competitiveness to determine performance and profit potential.
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