Strategic Management: VRIO

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What does 'Rarity' refer to in the VRIO framework?

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Uniqueness or scarcity of a resource or capability.

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What does the 'O' in VRIO stand for?

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Organization.

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What is the primary application of the VRIO framework?

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Assessing a firm's internal resources and capabilities for sustainable competitive advantage.

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What advantage does a firm possess with resources that are valuable, rare, inimitable, and organized?

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Sustainable competitive advantage.

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What does the 'I' in VRIO indicate?

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Inimitability, indicating the difficulty of replicating a valuable and rare resource.

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Define 'Value' in the context of the VRIO framework.

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The ability of a resource or capability to enable a firm to exploit opportunities or neutralize threats.

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What is the significance of 'Inimitability' in the VRIO framework?

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It refers to the difficulty competitors face in replicating a firm's resources or capabilities.

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How does 'Organization' contribute to a firm's competitive advantage?

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It ensures that resources are effectively integrated into the firm's operations.

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What is a 'Temporary Competitive Advantage'?

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An advantage that a firm can exploit for a limited time before competitors catch up.

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What is a 'Sustainable Competitive Advantage'?

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An advantage that allows a firm to maintain superior performance over a long period.