VRIO ANALYSIS OF THE COMPANY
(Example: Crown Cork and Seal, from Jay Barney (Gaining and Sustaining Competitive Advantage, 1997))
The following is intended to illustrate the format of a VRIO evaluation only. Add value chain activities and attributes that are relevant to your case and delete those that are not. Please refer to the textbook and the assigned article by Jay Barney for detailed explanations on the VRIO framework. Please make sure you describe the specific attributes clearly in bullet points; do not assume that you only need 3-4 simple words as shown in this table. Multiple attributes may be identified under the same value chain activity (e.g., Sales), in which case you will need to evaluate VRIO in separate lines for those attributes. Be careful when putting in competitive implications such as DC and competitive advantage and check carefully when to use “-“ under “R” or “I”. The symbol “-“ indicates that you do not need to evaluate a particular part of VRIO anymore, such as “-“ for I when “R” is “No”.
EXHIBIT # (INTERNAL ASSESSMENT)
Name of the Company: Crown Cork and Seal
|Value ChainActivities||Specific Attributes Along the Value Chain||V||R||I||W/S/DC/SDC||O||Competitive Implication: Likely to have|
|Purchasing||high quality inputs||Yes||No||–||Strength||Yes||Competitive Parity|
|Inventory Holding||reliable supplyable to meet unexpected orders on short notice||YesYes||NoYes||-Yes||StrengthSustainable Distinctive Competence||YesYes||Competitive ParitySustainable Competitive Advantage|
|Design & Engineering||speciality containers for multiple purposes||Yes||Yes||Yes||Sustainable Distinctive Competence||Yes||Sustainable Competitive Advantage|
|Manufacturing||inconsistent product quality||No||–||–||Weakness||–||Competitive Disadvantage*|
|Distribution||speedy & flexible delivery||Yes||Yes||No||Distinctive Competence||Yes||Temporary Competitive Advantage|
|Sales||fast, reliable order processing||Yes||Yes||Yes||Sustainable Distinctive Competence||No||Unrealized Sustainable Competitive Advantage|
|Service & TechSupport||speedy & competent maintenance and quality technical advice||Yes||Yes||Yes||Sustainable Distinctive Competence||Yes||Sustainable Competitive Advantage|
Notes: V denotes “valuable”; R means “rare”; I denotes “inimitable” (i.e. hard to imitate); O refers to “organization”.