Select a Saudi Arabian company with which you are familiar and reinforce the approach to resource and capability analysis by appraising the strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare, Imitable, Organization) Framework (See Strategy Capsule 5.6).
This week, our discussion thread is centered on the resource-based view (RBV) of the firm and clarifying capabilities. Select a Saudi Arabian company with which you are familiar and reinforce the approach to resource and capability analysis by appraising the strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare, Imitable, Organization) Framework (See Strategy Capsule 5.6).
Identify three key resources and/or capabilities of the company.
Vet each of the three against the VRIO (Valuable, Rare, Imitable, Organization) Framework.
Explain each resource/capability’s score given the VRIO rubric. For instance, does the resource/capability impart sufficient value, is the resource/capability rare, etc.
What is the likely competitive outcome for each resource/capability? That is, given its VRIO score is it likely to impart a sustainable competitive advantage, a temporary competitive advantage, competitive parity, or competitive disadvantage?
Make recommendations to the firm’s management as to which of the resources/capabilities you have identified should be invested (built up), divested and/or which additional resources should be acquired to supplement/leverage existing resources/capabilities.
In your response to student posts, focus on the viability of the suggestions made by other students: To which degree do these suggestions make sense regarding the possibility of gaining a sustainable competitive advantage?
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