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VRIO Analysis Matrix Example

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Published on 2022-09-20
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This VRIO Analysis Matrix Example is a business tool for examining an organization's internal resources to achieve a long-term competitive advantage. Strategic management professor James Barney introduced us to it in his 1991 paper Firm Resources and Sustained Competitive Advantage. He argues that analyzing external factors on their own is insufficient. Businesses must also take a resource-based view (RBV) and explore internal firm resources to seek a long-term competitive advantage. A value chain is an excellent place to begin combing your inner resources. A value chain analysis investigates the entire series of activities and resources required to transform raw materials into a customer-facing product, revealing how and where value can be added along the way.
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