Question

Which of the following statements is true of a VRIO framework?​ A. It involves the difficulty of identifying the actual cause of a firm’s successful performance. ​B. It involves a series of activities used in the production of goods and services that make a product. ​C. It focuses on value, rarity, imitability, and organizational aspects of resources and capabilities. ​D. It focuses on visual analysis, range, impact, and objective of resources and capabilities.

Answer 1

Answer:

The correct answer is ​C. It focuses on value, rarity, imitability, and organizational aspects of resources and capabilities.

Explanation:

Technique or analysis through which the company is able to detect what are the resources and capabilities that can provide a certain sustainable competitive advantage, that is, a position of superiority in the market compared to its competitors over time.

The VRIO analysis is based on the resources and capabilities approach and arises from the internal analysis of the company.

The terms and definitions that make up the VRIO analysis (Valuable, Rare, Inimitable and Organized) or VRIN Model (Valuable, Rare, Imperfectly Imitable and Non substitutability) are the following:

• VALUABLE. They allow new opportunities in the market.

• RARE, UNIQUE OR SCASSES. Company specific and difficult to obtain in the market.

• INIMITABLE. Hard to copy or imitate by competition.

• ORGANIZED. Exploited efficiently by the company and complementary.