In conducting an analysis of a business that is already running, we can use a tool in the form of viro in strategic management which usually applies generically to various fields that we are involved in. Actually the correct order in the mention is VRIO, which consists of Value, Rarity, Imitability, and Organized to Capture Value. It is important that the order of the questions is correct, and that all answers to these questions are YES. If so, then we can totally pursue what the company’s goals are.
The advantages of viro in strategic management have been discussed for a long time because of the simplicity it offers and it greatly facilitates top management in making decisions about a new line of business or seeing objectively how the company’s current position is. However, it is important in all decision-making processes that the data presented is truly valid, not just to pursue an idea, we let go of the fact that an idea is still not supported by adequate data. But don’t demand that the data is too perfect, because with only 70% confidence it should be able to make management decide something.
Advantages and Disadvantages of VRIO Framework
Of course, the framework used in viro in strategic management must be followed again with further things which are derivatives of this concept. Even apart from organizational needs, you can also do this to identify your own abilities. Especially if you are a professional who sells certain services that depend on your personal expertise, then we must be honest in answering all questions. Sometimes if the mathematical calculations already use the appropriate financial model, including the assumptions used are still relevant, then decisions can be taken immediately and can be directly implemented properly.
The VRIO Framework Can Be Used to Identify
To answer this question, viro in strategic management can finally answer questions related to what is a company’s competitive advantage. This distinctive value is usually the main characteristic, sometimes even felt by many people, including consumers, but to describe it clearly we have to have a long discussion and even have to detail one by one the advantages and disadvantages, including technical features that are sometimes decisive for consumers. Never underestimate something like this, because the collection of the many small features offered can determine the choice whether to use goods or services produced by a company or instead choose to use competitors’ products.
Strengths and Weakness of VRIO Framework
The main advantage of viro in strategic management is of course the simplicity it offers so that we can focus more on providing valid data. While the drawback is for businesses that are really complex and require technical elaboration, this sometimes still can’t fully answer what a company will do, or still can’t help top management in making decisions about a product. Because basically the main and highest goal of a company in using this concept is a sustainable competitive advantage that can last for a long time and allow all interested parties to grow and develop.
On the last occasion we discussed about southwest airlines strategic management plan in sufficient detail.
The concept of viro in strategic management has been used for a long time. But that doesn’t mean it’s without flaws. This scheme usually cannot be used in completely new businesses or there is no mapped market at all. In fact, as we all know, the strategic management process even started when a business was still in the minds of the originator or founder of the business. Indeed, if we are wrong in this early stage, there will always be an opportunity to correct it, but we will lose very valuable momentum that could determine the success of the business we are starting in the early stages.