VRINE

Model
Referring to Carpenter and
Sanders (2009:102), ‘all
competitors do not have
access to the same
resources and capabilities’.
Starting from this
VRINE Model is a framework which analyses the available resources through their capabilities
and work levels. It is a strategic planning tool that is used by organizations to make meaningful
business decisions. It contributes to the competitive advantage of an organization to the extent that
they satisfy the five components of the model. VRINE analysis helps managers systematically test the
importance of particular resources and capabilities and the desirability of acquiring new resources
and capabilities. It also suggests how a firm might use its resources and capabilities to differentiate
its products or services in valuable ways that competitors cannot imitate.
The acronym VRINE stands for Value, Rarity, Inimitability, Non-substitutability and Exploitability.
Apple was founded as Apple Computer Company on April 1, 1976, by Steve Wozniak, Steve
Jobs and Ronald Wayne to develop and sell Wozniak's Apple I personal computer. It was
incorporated by Jobs and Wozniak as Apple Computer, Inc. in 1977.
Apple went public in 1980 to instant financial success.

Apple Inc. is an American multinational technology company headquartered in Cupertino, California.

As of March 2023, Apple is the world's largest company by market capitalization, and with US$394.3
billion the largest technology company by 2022 revenue. It is considered one of the Big
Five American information technology companies, alongside Alphabet (parent company
of Google), Amazon, Meta, and Microsoft.

Value
The originality of Apple Inc from the onset has always been evident. The value of their products from
Macintosh to now todays IPhones and IPad Apple Inc has stood firm in the market. Unwavering to
various competitions, Apple is still the only phone that uses the Lightning connector
and they offer better software support, data security and deep optimization. However, the Apple Inc
products are unique in design as they are minimalist and sleek which makes them easy to move
about and use.

Rarity
One of Apple Inc major selling point is the integrated ecosystem. The ability to connect all apple
products like the IPhones, Ipads, Watches, TV and many more seamlessly with each other to create a
meshed user experience. The designs are one of the unique features as they are known to be sleek
and visually appealing and this has helped in selling their brand across many countries in the world.
Also, the consistent upgrade in technologies, softwares and other features have made positive
impact in the company as they prioritize consumers/ customers satisfaction.

Inimitability

Apples integrated ecosystem which makes them work seamlessly together requires a deep level of
understanding, one that competitors usually struggle with. Also, their designs cannot be replicated
as they are minimalist and easy to use which has made customers to build loyalty with them over
the years. However, Apple intellectual property and patents rights protects the products and
prevent competitors from imitating them.
Non-substitutability

Apple Inc is non-substitutable for many reasons like brand loyalty, Unique software, customer
experience, the integrated ecosystem of their products, the distinctive features like face id, touch id,
A-series chips and great customer support service which other brands find difficult to replicate has
continuously made apple product non-substitutable in the market.

Exploitability

Apple Inc strategy has contributed and made positive impact in its market dominance through
Innovation, unique designs, integrated ecosystem, premium marketing and retail, publicity and its
Apple store has it is one of the leading platforms for mobile app distribution.

In conclusion, analysis Apple Inc through the VRINE model has shown that, companies will make a
difference in their products by using different types of resources. However, an organization will be in
a better position to win the high competition among all competitors if it has more competitive and
capable resources.

Reference

 Inimitability and Non-

substitutability: ‘A valuable
and rare resource or capability
will grant an advantage only so
long as competitors don’t gain
possession of it or
find a close substitute’. As we
can see that those two
components are relative to the
first
1. Carpenter, M.A. and Sanders, W.G., 2009. Strategic Management: a Dynamic Perspective

2. Apple Inc. Fiscal 2023 Annual Report (Nov 2023) U.S. Securities and Exchange Commission.
Available at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019323000106/aapl-
20230930.htm

3. Apple Inc (2023) Apple Inc. Available at : https://en.wikipedia.org/wiki/Apple_Inc.

Concepts and Cases. 2nd

Upper Saddle River, N.J.:
Pearson Prentice Hall.
Apple was founded as Apple Computer Company on April 1, 1976, by Steve Wozniak, Steve
Jobs, and Ronald Wayne to develop and sell Wozniak's Apple I personal computer. It was
incorporated by Jobs and Wozniak as Apple Computer, Inc. in 1977. Apple went public in 1980 with
instant financial success.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California.
As of March 2023, Apple is the world's largest company by market capitalization, and with US$394.3
billion the largest technology company by 2022 revenue. It is considered one of the Big
Five American information technology companies, alongside Alphabet (parent company
of Google), Amazon, Meta, and Microsoft.