Based on the VRIO framework, a resource can be considered a source of competitive advantage if it is:
A) shared by most companies in an industry.
B) rare, valuable, difficult to imitate and organized or managed by the company.
C) the foundation of a company's strategy.
D) kept as a trade secret rather than as a patent.
E) increases the cost of producing the product and therefore the price charged to customers.

Question

Quizplus · Accepted Answer

According to the VRIO framework, a resource must be rare, valuable, difficult to imitate, and organized or managed by the company to be considered a source of competitive advantage. If a resource is shared by most companies in an industry, it cannot provide a sustained competitive advantage. A resource that is the foundation of a company's strategy can be important but must still meet the VRIO criteria. Keeping a resource as a trade secret rather than a patent may provide some advantage, but it alone does not make it a source of sustained competitive advantage. Increasing the cost of producing the product and therefore the price charged to customers may not always be desirable or sustainable.

Based on the VRIO Framework, a Resource Can Be Considered