Vrio Analysis Nokia, Amazon Shai Zamir, Dan Saguy

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Strategy Assignment 2 Internal Analysis - VRIO

Shai Zamir Dan Saguy

Introduction

, Inc. is an American multinational electronic commerce company in the online retail market. Its’ headquarters is in Seattle, Washington, United States. It is the world's largest online retailer, with different websites for large countries. Amazon was founded by Jeff Bezos in 1994 (the site went online in 1995). It started as an online bookstore, but soon diversified, selling DVDs, Music, software, games, electronics, apparel, furniture, food, and toys.

From a papermill company founded almost 150 years ago, Nokia is a multinational communications corporation that is headquartered in Finland and engaged in the market of manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over €42 billion and operating profit of €2 billion as of 2010. Nokia produces a wide range of mobile devices and offers Internet services such as applications, games, music, maps, media and messaging through its OVI platform. Its global device market share was 23% in the second quarter 2011.

VRIO analysis
The VRIO framework is the foundation for internal analysis and it begins with the identification of resources and capabilities. Resources can be tangible and intangible; capabilities may have such characteristics as well. VRIO analysis is a way to distinguish resources and capabilities from core competencies. Specifically, VRIO analysis should show the importance of value, rarity, inimitability, and organization as building blocks of competitive advantage. In our assignment we will try to analyze 4 resources and one capability for each of the companies which we choose previously: Amazon and Nokia.

VRIO analysis for Amazon and Nokia comparing 5 resources Resource 1: Brand name
Value Amazon.com is a strong brand name (rated #14 in 2011 most valuable brands). Amazon is

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