VRIO

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VRIO (value, rarity, imitability, and organization) is a business analysis framework for strategic management. As a form of internal analysis, VRIO evaluates all the resources and capabilities of a firm. It was first proposed by Jay Barney in 1991.

VRIO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential:

• The question of value: Is this resource or capability valuable to the firm?
• The question of rarity: Is control of the resource or capability limited?
• The question of imitability: Is there a significant cost disadvantage to a firm obtaining or developing the resource or capability?
• The question of organization (ability to exploit the resource or capability): "Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?"^[1]