VRIO( Valuable Rare Inimitable Organization)
VRIO is the business analysis framework Specifically the internal business analysis framework which deals with analyzing the internal resources and capabilities of the business that can achieve competitive advantages. Actually, all business organizations start with the formulation of vision, mission, and objective then analyze the internal as well as external business environment to find out the strengths and weaknesses along with the opportunities and threats.
Let us understand each element or variable of VRIO in detail
V-Value
The value of any organization can be understood as different from the perspective of marketing management. It can be understood as different from the prospect of human resource management.
Value from the perspective of Human Resource Management
Here the Actual meaning of value belongs to how much human resource management practices influence businesses to increase their value. The value of the business can be increased by reducing the cost in a different way cost can be reduced by reducing the cost per unit of the product, cost can be reduced by reducing the requirement of the human resource, and cost can be reduced by adopting the optimum and innovative business strategy.
Example
- The hotel and tourism industry, healthcare industry human resources efforts are responsible for increasing the value of the services they are record delivering. The human resource management practices and the efforts taken by the human resources in this above industry play a very vital role in increasing the value of the product or services.
- In an education institute the employees are the staff in teaching the students and building them capable enough to make better careers. The value of this service product education increased by the efforts taken by h Perspective of marketing management how the value understood
- human resources in the industry. Efforts taken by the staff to enhance the skills of the students, provide placement assistance, and make them better citizens are the unique characteristics of any institute that can make the service product more valuable.
- Amway is an organization that prefers to make every customer a distributor and run the business accordingly. This Different approach to the business enabled this organization to connect every custom and enhance the revenue. There human resource management practices make them unique and can Increase the value of the business.
Rare
Rare or rareness in the business belongs to the potential or capability of human resources to utilize their unique efforts that can not possibly vulnerability difficult to copy or not available in all the organization. These unique efforts are capability to take unique efforts making organization implement sustainable competitive advantages.
Organization needs to develop human resource potential in such a way that such potential cannot be available easily in all other organizations. The rare word indicates how rare the human resources potential is in the competitive organization or the market. HR Management Department need to develop new resource skills with innovation and creativity so that it is very difficult to find the competitors. These unique characteristics of the Human Resource Enable organization maintain sustainable competitive advantages.
The rare one belongs to how difficult the resources the capabilities required to produce the product or deliver the service. Call the business organizations that are making efforts to prepare a technology or use the resources to produce a product that will be very difficult to imitate or copy by the competitors. This rare concept is utilized in the business to Take the Competitive advantage.
Organizational culture, the code of conduct of the organization, and unique internal environmental factors of the organization are the major factors that can choose the rare in the business. If these factors are unique then the company can implement the rare concept which is difficult to copy or which is difficult to find or available everywhere in the industry.
Example
1 Infosys the IT company considers its human resources as an asset. Their human resources management practices enable them to utilize the unique characteristics of human resource management which is very difficult to find in the author organization.
2.The recruitment and selection process of Google, Microsoft, and TCS is unique which means responsibility for implementing Unikan’s innovative HRM practices. The training program conducted in this organization is also innovative and very difficult to find such practices in all the organizations. Very few organizations are implementing such type of practices which is why it can be known as a rare human resource management practice. The rare concept in human resource management practices enable organization to adopt sustainable competitive advantages
3. Soft drinks like pepsico Coca-Cola are having much more value in the market considering the preferences of the people but the rare concept is not present in this business. The reason behind that is competitors have similar alternatives or maximum similarities in the alternative products which made available in the market. So capability or resources used to make this product may be the same due to which it is very difficult to implement the rare concept in the business which gives the competitive advantage advantages.
4. In the electronic industries Apple, Adobe Industries Tesla, and Mercedes are the companies or business organization that employed the rare concept in manufacturing to which they can take the competitive advantage and produce product which is unique in the market.
Inimitability
Inimitability indicates the unique human resource practices that are difficult to copy by other competitors. These unique and innovative human resource management practices enable organizations to sustain for a longer product time and take competitive advantages.
If the competitors in the market can easily implement the strategy that is unique in strategy or innovation in their practices then it is very difficult to sustain in the market with longer Hence organizations need to adopt the HR strategy in search of that it is very difficult to imitate by other competitors.
Examples
- Infosys IT company considers their employees as assets which is quite difficult in most organizations.
- The selection and training in companies such as Google and Microsoft is difficult to imitable for all the organizations.
- Some organizations whose human resources management practices such as recruitment and selection, training and development, performance appraisal etc are unique and innovative. Their HRM practices are very difficult to imitable due to which they can maintain sustainable competitive advantage.
Organization
It indicates how well the organization gathers and utilizes required resources in order to get competitive advantages. It always strives to maintain the sustainable growth of the organization. same practices that is organized and implemented in different ways in many organizations making them unique and potential enough to maintain sustainable competitive advantages.
Example
Workers are selected from same labour market however two companies such as Ford and General motors have different implementation of organizing for better utilization of workers’ efforts. Ford utilized in efficient manner to maintain sustainable growth and competitive advantages.