The Vrio Diagram
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The Vrio Diagram

Resource or

Capability

Valuable

Rare

Inimitable and non-

substitutable

Organized to Exploit

Impact on

Competitive

Advantage

Strong Global

Presence

Realized Sustainable

Competitive

Advantage

Specialty Coffees

Realized Competitive

Parity

Upcale and Cozy

Atmosphere

Realized Temporary

Competitive

Advantage

4

3

2

1

A

B

D

F

C

E

Yes

Yes

No

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

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publish time: 2021-08-13
Viro

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. 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. The dimensions (value, rarity, imitability, and organization) ask whether the business in question's resources and capabilities are valuable if they are unique, easily replicable, and if the business itself has the right systems and processes place is ready to capture value truly.

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