This week, our discussion thread is centered on the resource-based view (RBV) of the
firm and clarifying capabilities. Select a Saudi Arabian company with which you are
familiar and reinforce the approach to resource and capability analysis by appraising the
the strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare,
Imitable, Organization) Framework (See Strategy Capsule 5.6).
1. Identify three key resources and/or capabilities of the company.
a. Vet each of the three against the VRIO (Valuable, Rare, Imitable, Organization)
b. Explain each resource/capability’s score given the VRIO rubric. For instance, does the
resource/capability impart sufficient value, is the resource/capability rare, etc.
c. What is the likely competitive outcome for each resource/capability? That is, given its
VRIO score is likely to impart a sustainable competitive advantage, a temporary
competitive advantage, competitive parity, or competitive disadvantage?
d. Make recommendations to the firm’s management as to which of the
resources/capabilities you have identified should be invested (built up), divested, and/or
which additional resources should be acquired to supplement/leverage existing
Embed course material concepts, principles, and theories (require supporting citations)
in your initial response along with at least one scholarly, peer-reviewed journal article.
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