VRIO Framework

Value added: what does the firm create

Rarity: rare resources gives you comparative advantage
Imitability: how easy it is to imitate product
Organization: corporate governance who owns company who
manages it. Need to have hierarchy.
- how many managers
- how many directors
Benchmarking:
- take a firm + compare resources and capabilities with other
firm.

VRIO Alibaba:
advantage over ebay- connects producers with producersconnects businesses together so they can expand.
They have credit application AliPay.
o These add value business to business; business to
commerece
o Rare: rare- not done
o Immitability: YES easy to imitate by ebay

Benchmarking diagram:
- how to read this diagram:
- importance how important that capability is in the industry
- Relative strength how strong this capability is in the industry
- E.g benchmarking Sony: C4 is the best entrepreneurial drive
to deive to develeop new products
Correlation:
- stronger correlation in top right= stronger firm

Google and Amazon:

- googel has more influential power over internet
o google known as search engine
o amazon known as business of delivering goods- buying
stuff online.
- Why are they rivals?
o If you want to buy something you search it onto amazon
not google amazon used as search engine

o Google express delivery of goods new way of

competing with amazon
But only available in the USA
o Google gives adverts for products
o Steal and recruit eachothers employees
o Amazon are much more established for delivery lhave
reputation; have warehouses
Google works with local merchants e..g Barnes
and Noble, Petsmart etc.