Vrio framework is a strategic analysis tool that is used to assess and protect the internal resources and capabilities of the organization to find out either these resources help the organization in attaining sustained competitive advantage.
Vrio framework asks four questions to the internal resources: valuable? Rare? Costly to imitate? Organized management to capture the value of the resources?
A resource or capability of the company meeting all the above four questions determines the long-term sustainability of the firm. Through Vrio Analysis, companies can uncover and protect these resources and capabilities.
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Plot the position of the following companies on Figure 8.3
