VRIO
Business & Finance abbreviation · Management & Strategy
| Stands for | Value, rarity, imitability, organization |
|---|---|
| Categories | Business & Finance |
VRIO stands for Value, rarity, imitability, organization, a management & strategy abbreviation.
Framework for judging whether a company's resources or capabilities give it a lasting competitive advantage by asking whether each is valuable, rare, costly to imitate and supported by the organization. Only resources that pass all four tests count as sources of sustained advantage.
Example: A VRIO analysis showed our logistics network is valuable and rare but easy for rivals to copy within two years.
Usage notes
Developed by Jay Barney within the resource-based view of the firm; it evolved from his earlier VRIN model (valuable, rare, inimitable, non-substitutable) published in 1991. VRIO is widely taught in MBA strategy courses alongside Porter's Five Forces.
Related abbreviations
More management & strategy abbreviations
- AGM – Annual general meeting
- AOB – Any other business
- AOP – Annual operating plan
- BAU – Business as usual
- BCP – Business continuity plan
- BD – Business development
- BHAG – Big hairy audacious goal
- BI – Business intelligence
- BoD – Board of directors
- BPM – Business process management
- BPO – Business process outsourcing
- BPR – Business process reengineering