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Chapter 3 - Coggle Diagram
Chapter 3
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The VRIO framework
Value – The resource or capability must have value if it is to allow the organization to choose a strategy which exploits opportunities available or responds to threats from competitors.
Rarity – If the resource or capability is widely available to others it will not provide a basis for competitive advantage and superior returns on investment.
Imitability – If the resource or capability can be easily imitated or copied competitors will do so and so competitive advantage may be achieved temporarily but will not be sustainable.
Organizational capability – An organization needs to be able to organize itself in such a way that it is capable of exploiting the resource or capability which it has identified as valuable, rare and incapable of being imitated.