Question

According to the VRIO (value, rarity, imitability, organization) criteria, which of the following marketing or supply chain activities must be avoided by companies?
a. Activities that are hard to imitate
b. Activities that add value
c. Activities that contribute to organizational capabilities
d. Activities that are followed by other vendors

Answer 1

Answer:

D.

Explanation:

According to VRIO there are 4 questions  asked about a resource or capability to determine its competitive potential:

The Question of Value: Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" (can it add value? )

The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?"  

The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?"  (can other vendors do the same activities?)

The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?"

With those 4 questions, we analize the statements.

a. It is in accordance with the question of imitability.

b. It is in accordance with the question of value.

c. It is in accordance with the question of organization.

d. It should be avoided. We don't want our activities to be imitated.