Evaluation of key resources
A unique resource is one which is not found in any other company. A resource is considered to be valuable if it helps to create strong demand for the product.
Barney has evolved VRIO framework of analysis to evaluate the firm’s key resource, say
- Value – does it provide competitive advantage?
- Rareness – do other competitors possess it?
- Imitability – is it costly for others to imitate?
- Organization – does the firm exploit the resource?
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