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VRIO Framework Example

Joy

Published on 2021-08-13

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1. Introduction

In the following VRIO model, the "Competitive Disadvantage – not valuable" means that we can not create value using this resource/capability, so it should be reconsidered because it brings no value to any company. At the very same time, "Unexploited Competitive Advantage – valuable, rare, imitable but not organized" means that resource or capability generates a rare value in the market, and it is hard to imitate.

Despite these advantages generating this value is expensive in terms of money, effort, plan, organize, lead and control. As the below graphical representation suggests, the VRIO model focuses on the internal factors, not external factors like supplier's situation, economic, political, technological, social, marketplace demand change, etc.

2. What is a VRIO Matrix

VRIO Analysis is a powerful analytical technique for assessing a company's resources and, as a result, its competitive advantage. The abbreviation VRIO comes from the initials of the assessment dimensions' names: Value, Rareness, Imitability, and Organization.

3. How to Create a Matrix Diagram

Creating a Matrix Diagram in EdrawMax Online is pretty simple. The free Architecture Matrix Diagram maker has several features as you can instantly import the images or icons from your system or Google Drive or DropBox.

Step 1: Login EdrawMax Online

Log in EdrawMax Online using your registered email address. If this is your first time accessing the tool, you can create your personalized account from your personal or professional email address.

Step 2: Choose a template

EdrawMax Online comes with hundreds of free diagram templates. Select a pre-designed template by entering the Keyword in the ""Search"" section or exploring different diagram sets. In this case, you will find different types of ""Grid and Matrix"" under the ""Preschool Education"" section. Alternatively, you can simply click on ""+"" in EdrawMax Online canvas to create a diagram of your preference.

Step 3: Work on your research

As we see from the Architecture Matrix Diagram, an architecture matrix structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project.

Step 4: Customize the diagram

Customize your Architecture Matrix Diagram by changing the color or adding more relevant data. As the below image suggests, the Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning and help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest and discontinue or develop products.

Step 5: Export & Share

Once your required Architecture Matrix Diagram is completed, you can share it amongst your colleagues or clients using the easy export and share option. You can further export the Architecture Matrix Diagram in multiple formats, like Graphics, JPEG, PDF, or HTML. Also, you can share the designs on different social media platforms, like Facebook, Twitter, LinkedIn, or Line.

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