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VRIO Analysis Template

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Table of Contents
(clickable)
  1. ⚙️ How Does It Work?
  2. ❓ FAQ
  3. 🚀 VRIO Tips
  4. ✍️ VRIO Example
  5. 👀 Free Samples
  6. 🔗 References

⚙️ VRIO Table: How Does It Work?

A VRIO analysis table can be useful for students completing an assignment and companies assessing their plans and industry. It can show issues or potential of the organization, its products, and its services. Take advantage of it now by using our template! Here is how you do it:

  1. Gather what your business/service/product has to offer. You should consider all the essential resources and capabilities your company has.
  2. Add these resources into the sections. Try to make them succinct so that they look good in the Preview.
  3. Evaluate these resources. Consider whether they bring value, rarity, inimitability, or organization to the table.
  4. Customize your table. Here, you can pick the type and color of the result you will get.
  5. Enjoy the VRIO analysis visualized. Download it in your preferred format, or get a template to use later.

❓ VRIO Analysis Table — FAQ

📌 What is VRIO analysis?
VRIO is a strategic planning method of assessing the strengths and weaknesses of a company compared to its competitors. Developed by Michael E. Porter, the approach was first published in 1979. VRIO signifies Value, Rarity, Imitability, and Organization.
📌 What is the purpose of VRIO analysis?
A VRIO analysis table helps companies determine their competitive position in the market. Thus, it allows them to make better business decisions. For example, if an organization wants to enter a new market, this framework will help it identify potential threats.
📌 Why is VRIO analysis important?
VRIO analysis enables companies to evaluate their position in the market. This can help them identify areas where they are superior or inferior to their competitors. It can also allow managers to understand how much competitive pressure their organization faces from others within the industry.
📌 When would a company use a VRIO analysis?
A company can use VRIO analysis anytime because the results it provides are always of use. When an organization attempts to make strategic decisions about its future direction, it has to assess the market situation. Or they might need a VRIO table to decide which products or services will likely be more profitable.

🚀 How to Do a VRIO Analysis: Template Exploration

When you use our template, you may not understand some of its features. That's why we've decided to explain how you can analyze any company with a VRIO table.

How to use a VRIO analysis template.

As part of the analysis, the framework breaks down each component into four categories:

📈 Value

Do you have unique and valuable resources for your customers?

This measures how much customers are willing to pay for a product or service. If there is no value to the goods, no one wants them, no matter how affordable they are.

📈 Rarity

Can another company use the same resources for creating such products or services? Are they unique?

It shows how challenging it would be for competitors to copy what a company is doing. When others don't have access to the same resources as your business, it’s a huge advantage.

📈 Imitability

Are your products or services expensive to imitate? Do they have any substitutes on the market?

This feature reveals whether it’s easy and affordable for the competitors to recreate what your company is doing. In case what you offer is inimitable, it has greater value.

📈 Organization

Is your company organized enough?

It makes you wonder whether your business has a solid foundation, structure, management systems, and so on. It is essential to have clear goals, plans, and procedures in place.

✍️ VRIO Analysis Example: Amazon

It can be hard to understand the VRIO chart without an appropriate example. You can check free samples with this type of analysis on the Internet. Or see this assessment of Amazon’s competitive advantages here.

Amazon has a lot of competitive advantages.
  • One of the most effective ways Amazon has grown its business is through research and development (R&D). The company spends billions annually on studies and value chain analysis, which allows it to improve its products. For example, Amazon Echo took years of R&D. This included an evaluation of voice recognition technology and artificial intelligence.
  • Another area where Amazon excels is in its distribution network. The company employs its fleet of planes to deliver packages worldwide at an affordable price. This model has allowed the organization to reach customers globally despite remote locations or high transit costs.
  • In addition to these advantages, the company provides a wide range of products. It offers low prices on third-party goods such as books and household items. Along with affordable things, the company sells expensive products and even its branded merchandise (Amazon Basics).
  • Amazon is great at customer experience because it offers free shipping for millions of products through its website. This allows clients to try new items without committing to an expensive purchase. Yet, the company’s questionable treatment of its employees causes the delivery people to mess up the orders. It affects both the brand’s image and customer experience.
  • The company employs various marketing and promotion methods, including paid, affiliate, and email advertising. This is not a long-term source of competitive advantage. Yet, it does provide Amazon with a momentary benefit. Other businesses cannot employ competitive parity when challenging this conglomerate.
  • Amazon is the world's largest e-commerce company, and various causes have fueled its rise. Today, it is a household brand name in multiple parts of the globe. Few other companies can compete in terms of recognizability.

👀 Free VRIO Table Samples

In case you need more examples than the Amazon one above, feel free to read these VRIO analysis essays.

🌐 VRIO Analysis of Gulf Air Company

🌐 Value of Strategic Management: SWOT, VRIO, and TOWS

🌐 Westlake Lanes: Opportunities for the Company Case Study

🌐 True Religion Brand Jeans Company's Failure

Thank you for reading the article! Now you can fully take advantage of our online tool. Send it to others who might need assistance with strategic planning and evaluation. If you’d like to try out another business analysis tool, you can check these ones:

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🔗 References

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