In the VRIO framework, the questions of value and rarity are:
A)Determinants of the level of competitive advantage.
B)Mostly unrelated issues.
C) Less important than whether a firm's activity can be imitated.
D) Essentially the same question.

Question

In the VRIO framework, the questions of value and rarity are:
A)​Determinants of the level of competitive advantage.
B)​Mostly unrelated issues.
C) ​Less important than whether a firm's activity can be imitated.
D) ​Essentially the same question.

Quizplus · Accepted Answer

The VRIO framework analyzes a firm's resources and capabilities to determine their potential for competitive advantage. The questions of value and rarity are critical determinants of whether a resource or capability can provide a competitive advantage. Consequently, the level of competitive advantage a firm may gain depends on the answers to these two questions.

In the VRIO Framework, the Questions of Value and Rarity