Resource-Based View (RBV) and VRIN Framework (PowerPoint PPTX)

DESCRIPTION

Research by various academics has suggested various models of improving profitability and developing a sustainable competitive advantage. In particular, Rumelt, in his research in 1991, identified that, contrary to Michael Porter's idea of industry solutions as the main source of profitability, the key source of superior performance and profitability in large US corporations was at the individual organizational level, instead of corporate level resources.

Likewise, as per Prahalad and Hamel, distinctive competencies or capabilities of the organization make the key difference in achieving superior performance and competitive advantage.

This PowerPoint presentation deliberates on the Resource-Based View (RBV) model that is one of the methodologies to understand the differences in organizations' performance. RBV argues that an organization's internal resources—workforce, key competencies—are what matter most. A trained and equipped workforce has now become a key driver of success for an organization. These internal resources are created, inhibited, and evolved over time.

Jay Barney postulated the VRIN framework in 1991 to supplement the RBV and evaluate whether resources controlled by an organization are able to sustain a competitive advantage. Barney indicated that for an organization to stand out from its competition, its internal strategic resources must possess the following attributes:

1. Valuable – An organization's resources are deemed valuable only if they aid in the achievement of its objectives and value creation through the provision of products or services.

2. Rare – A resource is considered rare if it is not widely possessed or easily accessible by competitors.

3. Inimitable (or difficult to imitate) – A resource is inimitable if competitors cannot easily replicate or substitute it. The more difficult it is for competitors to mimic a resource, the more sustainable the competitive advantage.

4. Non-substitutable – The uniqueness of resources ensures that the resources remain a source of competitive advantage because competitors cannot easily replace or replicate the benefits they offer.

This PowerPoint presentation on Resource-Based View also includes some slide templates for you to use in your own business presentations.

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Source: Best Practices in Competitive Advantage PowerPoint Slides: Resource-Based View (RBV) and VRIN Framework PowerPoint (PPTX) Presentation, LearnPPT Consulting