A core competency is simply a resource, capability, or bundle of resources and capabilities that are VRIO. While VRIO resources are the best, they are quite rare, and it is not uncommon for successful firms to simply be combinations of a large number of VRIO or even VRIO resources and capabilities. As the below image suggests, VRIO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential: the question of value, the question of rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of the organization (ability to exploit the resource or capability).
