VRIO Analysis

Making the Most of Organizational Resources

Developing strategic assets.

© iStockphoto

Every so often, an organization needs to ask itself why it has a certain market position.

Why is it doing better – or worse – than its competitors?

Do the skills of its workers contribute to the organization's success?

Do its patents and copyrights put the company in a winning position?

Or is some other factor aiding it – or impeding it?

Many factors can contribute to market position. Each organization has its own specific set of resources – people, processes, physical assets, and more. The way that the company conducts business and uses these resources can be a major reason for its success.

In businesses that to some extent rely on underlying resources, you need to evaluate the potential and effectiveness of all of these resources on an ongoing basis, to build a competitive edge. VRIO analysis can help you do this.

The VRIO Parameters

VRIO stands for:

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