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Michael Porter in the 1980s was a key proponent of Market-based Positioning view of achieving Strategic Competitive Advantage<\/a>. However, with the advancement of technology, competition is becoming intense, work cultures are improving, and the workforce is getting increasingly competent to create better value propositions.<\/p>\n Research by various academicians and researchers has suggested other models of gaining profitability<\/a> and sustainable competitive advantage.\u00a0 Rumelt, in his research in 1991, identified that, contrary to Porter\u2019s idea of industry solutions as the main source of profitability, the key source of superior performance<\/a> and profitability in large US corporations was at the individual organizational level instead of corporate level resources.<\/p>\n As per Pralahad and Hamel, distinctive competencies or capabilities of the organization make the key difference in achieving superior performance and competitive advantage. \u00a0To understand the difference in organizations\u2019 performance, the Resource-Based View (RBV) and VRIN<\/a> is one of the most assuring methodologies. \u00a0RBV argues that an organization\u2019s internal resources\u2014e.g., workforce with niche skills, key competencies, processes, and knowledge\u2014are what matter most to outdo rivals. These internal resources are created, inhibited, and evolved over time.<\/p>\n RBV warrants the deployment of the right resources to the right projects to ensure enhanced productivity and seamless project execution.<\/p>\n According to RBV, resources can be tangible or intangible.<\/p>\n Key benefits of using the RBV include:<\/p>\n Jay Barney in 1991 postulated that for an organization to stand out from its competition and develop sustainable competitive advantage, its strategic internal resources must possess the following attributes:<\/p>\n The VRIN attributes of strategic internal resources outline why one organization is more successful than its competitors.<\/p>\n Let\u2019s now discuss the first two of the VRIN attributes.<\/p>\n According to the VRIN model under the RBV, an organization’s resources are deemed valuable only if they aid in the achievement of its objectives, create demand for offerings, improve quality, increase revenue, reduce costs<\/a>, differentiate the offerings in the market, or neutralize threats in the environment.<\/p>\n Valuable resources help the company operate more efficiently and effectively, making better use of its assets and opportunities in the market.\u00a0 Resources that add to the value offered to customers, such as brand reputation or unique technology, can enhance customer loyalty<\/a> and willingness to pay a premium.\u00a0 For instance, the secret formula of Coca-Cola syrup is a valuable resource because its unique taste is highly appreciated worldwide and contributes to strong brand loyalty.\u00a0 This valuable resource allows the company to charge a premium price and maintain its market leader position. The syrup formula is carefully guarded, so no other competitor has been able to replicate the exact taste, providing Coca-Cola with a sustained competitive advantage.<\/p>\n A resource is considered rare if it is not widely possessed or easily accessible by competitors. \u00a0This rarity of resources or capabilities make them hard to replicate.<\/p>\n Every organization has something that is exclusive to itself.\u00a0 Rarity makes a resource more valuable because its limited availability means that not every firm can use it to implement competitive strategies<\/a>.\u00a0 Even if a resource is valuable, it will not be a source of competitive advantage if it is widely available to all competitors.<\/p>\n For instance, a prime location for a retail store can be a rare resource.<\/p>\n Interested in learning more about the other attributes of RBV and VRIN framework? You can download an editable PowerPoint presentation on Resource-Based View (RBV) and VRIN Framework here <\/a>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives.<\/p>\n For even more best practices available on Flevy, have a look at our top 100 lists:<\/p>\n Michael Porter in the 1980s was a key proponent of Market-based Positioning view of achieving Strategic Competitive Advantage. However, with the advancement of technology, competition is becoming intense, work cultures are improving, and the workforce is getting increasingly competent to create better value propositions. Research by various academicians and researchers has suggested other models of… Resource-Based View (RBV) and VRIN Framework<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":13481,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[408,81],"tags":[122,1136,116,2702,3349,3350,3351,388,3347,3348],"class_list":["post-13439","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-leadership","category-strategy","tag-competitive-advantage","tag-decision-making","tag-performance","tag-profitability","tag-rbv","tag-resource-based-view","tag-strategic-resources","tag-strategy-2","tag-vrin-framework","tag-vrio-framework"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/13439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=13439"}],"version-history":[{"count":7,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/13439\/revisions"}],"predecessor-version":[{"id":13486,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/13439\/revisions\/13486"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/13481"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=13439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=13439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=13439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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<\/a><\/p>\nValuable<\/strong><\/h2>\n
Rare<\/strong><\/h2>\n
Do You Find Value in This Framework?<\/strong><\/h2>\n
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