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”.

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EXHIBIT # (INTERNAL ASSESSMENT)

Name of the Company: Crown Cork and Seal

Value ChainActivitiesSpecific Attributes Along the Value ChainVRIW/S/DC/SDCOCompetitive Implication: Likely to have
Purchasinghigh quality inputsYesNoStrengthYesCompetitive Parity
Inventory Holdingreliable supplyable to meet unexpected orders on short noticeYesYesNoYes-YesStrengthSustainable Distinctive CompetenceYesYesCompetitive ParitySustainable Competitive Advantage
Design & Engineeringspeciality containers for multiple purposesYesYesYesSustainable Distinctive CompetenceYesSustainable Competitive Advantage
Manufacturinginconsistent product qualityNoWeaknessCompetitive Disadvantage*
Distributionspeedy & flexible deliveryYesYesNoDistinctive CompetenceYesTemporary Competitive Advantage
Salesfast, reliable order processingYesYesYesSustainable Distinctive CompetenceNoUnrealized Sustainable Competitive Advantage
Service & TechSupportspeedy & competent maintenance and quality technical adviceYesYesYesSustainable Distinctive CompetenceYesSustainable Competitive Advantage

Notes: V denotes “valuable”; R means “rare”; I denotes “inimitable” (i.e. hard to imitate); O refers to “organization”.

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