When a company wishes to find sources for a long-term competitive edge, it usually has two possibilities. It can either look at the external variables affecting the firm (PESTLE Analysis) or the internal aspects (BCG Matrix and Value Chain Analysis). The VRIO Framework, often known as the VRIO analysis, fits within this category.
1. What is VRIO Chart
VRIO is a four-part business analysis framework used to determine a business' competitive potential. The analysis process takes a resource or capability through four dimensions (value, rarity, imitability, and organization). These dimensions assess whether the resource or capability in question is unique, easily replicable, or if there is enough organization in place to capture value.
2. The VRIO Analysis Example
The following VRIO is for Starbucks, and as the diagram illustrates, some various resources and capabilities could have been chosen to perform this VRIO analysis to understand, analytically, what Starbucks has achieved and realized.
3. The Benefits of VRIO Chart
Few companies take the time to examine their core skills to understand what distinguishes them. It's a worthwhile activity in our opinion because:
- It enables you to capitalize on previously unappreciated competitive advantages.
- It can assist you in charting a course for future initiatives and better allocating business resources.
4. How to Create a Matrix Diagram
Creating a Matrix Diagram in EdrawMax Online is pretty simple. The free Architecture Matrix Diagram maker has several features as you can instantly import the images or icons from your system or Google Drive or DropBox.
Step 1: Login EdrawMax Online
Log in EdrawMax Online using your registered email address. If this is your first time accessing the tool, you can create your personalized account from your personal or professional email address.
Step 2: Choose a template
EdrawMax Online comes with hundreds of free diagram templates. Select a pre-designed template by entering the Keyword in the ""Search"" section or exploring different diagram sets. In this case, you will find different types of ""Grid and Matrix"" under the ""Preschool Education"" section. Alternatively, you can simply click on ""+"" in EdrawMax Online canvas to create a diagram of your preference.
Step 3: Work on your research
As we see from the Architecture Matrix Diagram, an architecture matrix structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project.
Step 4: Customize the diagram
Customize your Architecture Matrix Diagram by changing the color or adding more relevant data. As the below image suggests, the Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning and help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest and discontinue or develop products.
Step 5: Export & Share
Once your required Architecture Matrix Diagram is completed, you can share it amongst your colleagues or clients using the easy export and share option. You can further export the Architecture Matrix Diagram in multiple formats, like Graphics, JPEG, PDF, or HTML. Also, you can share the designs on different social media platforms, like Facebook, Twitter, LinkedIn, or Line.