This VRIO Analysis Matrix is a tool for analyzing a company's internal resources and capabilities to determine whether they can provide a source of sustained competitive advantage. VRIO is an acronym that stands for value, rarity, imitability, and organization. Firms use various tools to analyze their external (Porter's 5 Forces, PEST analysis) and internal (Value Chain analysis, BCG Matrix) environments to understand the sources of competitive advantage. VRIO analysis is one such tool for analyzing a company's internal resources. Barney, J. B. (1991) developed the tool in his work 'Firm Resources and Sustained Competitive Advantage,' where the author identified four attributes that a firm's resources must possess to become a source of sustained competitive advantage.
