BUS 496 (Business Strategy) Assignment: VRIO Framework Analysis
Objective:
This assignment will help you understand the VRIO framework and apply it to a real-world
company. By the end of this assignment, you should be able to identify and assess the
resources, capabilities, and competencies that provide a company with a competitive
advantage.
Instructions:
1. Select a Company
Choose a company you are familiar with, either from personal experience, academic study,
or public knowledge. Ideally, select a company where you can gather enough information to
analyze its resources, capabilities, and strategies.
2. Analyze the Company's Resources and Capabilities Using the VRIO Framework
Use the VRIO framework provided in the figure to assess the company's resources and
capabilities. For each key resource or capability, answer the following questions:
• Is it Valuable? – Does this resource enable the company to exploit opportunities or
neutralize threats in its environment?
• Is it Rare? – Is this resource controlled by a relatively small number of firms?
• Is it Costly to Imitate? – Is this resource difficult to develop, acquire, or imitate by
competitors?
• Is the Firm Organized to Capture Value? – Does the company have the structure,
systems, and processes in place to fully utilize this resource and achieve a
competitive advantage?
3. Identify the Outcome of Each Resource
Based on your analysis, determine the competitive implication of each resource (e.g.,
Competitive Disadvantage, Competitive Parity, Temporary Competitive Advantage, or
Sustained Competitive Advantage).
4. Prepare a Report
Write a report summarizing your analysis. Include the following sections:
• Introduction: Briefly introduce the company and why you selected it.
• VRIO Analysis: For each key resource, provide a detailed analysis addressing each
VRIO question.
• Conclusion: Summarize the overall competitive advantage of the company based on
your VRIO analysis.
5. Presentation
Prepare a short presentation (5-10 minutes) summarizing your findings. Be ready to
explain why each resource either does or does not lead to a sustained competitive
advantage.
Submission:
• Report: Submit your report (2-3 pages) on the learning platform by the specified
due date.
• Presentation: Present your findings in the next class session.
Hint:
Refer to the provided VRIO model diagram to help guide your analysis and answer the
questions effectively.
