Whole Food’s Core Competences and VRIO essay
Writing
Write 2 pages essay about Whole Food’s Core Competences and VRIO. (Valuable, Rare, Imitation Costly, Organized to capture value)
What is VRIO
Valuable if:
• Helps exploit an opportunity or offset a threat
Rare if:
• Only one or a few firms possess it
Costly to Imitate if:
• Competitors can’t develop the resource for a reasonableprice
The firm is organized to capture value through:
• Effective organizational structure and coordinating systems
The VRIO Framework
Tool for evaluating firm resource endowments
To be the basis of a competitive advantage, resources must be:
• Valuable
• Rare
• Costly to Imitate, and the firm must be
• Organized to capture the value of the resource
According to this model, a firm can gain and sustain a
competitive advantage only when it has resources that
satisfy all of the VRIO criteria.
