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According to VRIO, if a resource or capability does not add value , should you continue with analysing its rarity, inimitability and organisational support

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According to VRIO, if a resource or capability does not add value , should you continue with analysing its
rarity, inimitability and organisational support

According to VRIO, if a resource or capability does not add value , should you continue with analysing its rarity, inimitability and organisational support

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SaffronProfessional · Tutor for 6 years

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No, if a resource or capability does not add value, there is no need to continue with analyzing its rarity, inimitability and organizational support.

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## Step 1: Understanding the VRIO Framework<br />The VRIO framework is a tool for analyzing a company's resources and capabilities. VRIO stands for Value, Rarity, Imitability, and Organization. These are the four parameters used to evaluate the competitive potential of a company's resource or capability.<br /><br />## Step 2: Applying the VRIO Framework<br />The first step in the VRIO analysis is to assess whether a resource or capability adds value. If it does not add value, it cannot be a source of competitive advantage. <br /><br />## Step 3: Evaluating the Need for Further Analysis<br />If a resource or capability does not add value, there is no need to analyze its rarity, inimitability, and organizational support. These factors only matter if the resource or capability is valuable.
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