VRIO Analysis of 

Rocket Internet Rise of the

German Silicon Valley
 Valuable
• Financial resources : As these helps in investing
into external opportunities.
• Local food products: As these are highly
differentiated.
• Employees : As the employees are highly
trained which leads to more productive output.
• Patents: As these allow firm to sell the product
without competitive interference.
 Rare
• Financial resources : As strong financial resources are
only possessed by a few companies in the industry.
• Employees :  These employees are highly trained and
skilled, which is not the case with employees in other
firms. The better compensation and work
environment ensure that these employees do not
leave for other firms
• Distribution network: As competitors require a lot of
investment and time to come up with distribution
network.
 Imitable
• Financial resources : As this is very costly to
imitate . These are acquired by the company
over years .
• Local food products : Not that costly to imitate.
• Patent: it is very difficult to imitate because it is
not allow to imitate patent product.
• Distribution network: it is very costly to imitate.
 Organization
• Financial resource: These are organized to
capture value and these are used strategically
to invest in the right places.
• Patent: It is not well organized which means
organization is not using these patents to their
full potential.
• Distribution network: It is well organized as
these help them to reach every customers.
 Conclusion of VIRO test
• From the VRIO Analysis it was identified that the
financial resources and distribution network
provide a sustained competitive advantage.
• The patents are a source of unused competitive
advantage.
• There exists a temporary competitive advantage
for employees.
• There exists a competitive parity for local food
products.