Comparing Vrio & Swot
I will explain the link and differences between the VRIO-framework and the SWOT-model. Before I will explain this, I will first give you an insight in the meaning of these two models.
SWOT-model:
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A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization. Opportunities and threats originate from outside the organization.
A SWOT analysis, usually performed early in the project development process, helps organizations evaluate the environmental factors and internal situation facing a project. Strengths and weaknesses are attributes that measure your internal capability. Opportunities and threats refer to how the external environment affects your team/business/group. Ideally a cross-functional team or a task force that represents a broad range of perspectives should carry out SWOT analyses.
Examples of possible Strengths and Weaknesses: • Experience • Resources • Originality • Customer Service • Efficiency • Competitive Advantages • Infrastructure • Quality • Staff
Examples of possible Opportunities and Threats: • Business Alliances • New Products and/or Services • Increasing Market Saturation • Targeting a New Market Segment
VRIO-framework:
An internal tool of analysis in the context of businesses. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability). • Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" • Rarity: "Is control of the
SWOT-model:
[pic]
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths and weaknesses are internal to an organization. Opportunities and threats originate from outside the organization.
A SWOT analysis, usually performed early in the project development process, helps organizations evaluate the environmental factors and internal situation facing a project. Strengths and weaknesses are attributes that measure your internal capability. Opportunities and threats refer to how the external environment affects your team/business/group. Ideally a cross-functional team or a task force that represents a broad range of perspectives should carry out SWOT analyses.
Examples of possible Strengths and Weaknesses: • Experience • Resources • Originality • Customer Service • Efficiency • Competitive Advantages • Infrastructure • Quality • Staff
Examples of possible Opportunities and Threats: • Business Alliances • New Products and/or Services • Increasing Market Saturation • Targeting a New Market Segment
VRIO-framework:
An internal tool of analysis in the context of businesses. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability). • Value: "Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" • Rarity: "Is control of the