Summary of VRIO, Competitive Implications, and Economic Implications Costly to Imitate? Organized Properly?

No No Yes No Competitive Implications Disadvantage Parity Temporary Advantage Sustained Advantage

Valuable? No Yes Yes

Rare?

Yes

Yes

Yes

Yes

conomic Implications Economic Implications Below Normal Normal Above Normal (at least for some amount of time) Above Normal

Exploited by Resource/Capability Financial 1 Cash 2 Equity holders 3 Bond holders 4 Financing (GMAC) Physical 1 Marketing/Advertising 2 Product R&D 3 Engineering 4 Manufacturing Plants 5 Product Reliability 6 Brand Portfolio 7 Domestic Market Share Y Y Y Y Y Y Y N N N N N Y N N Y Y N N Y Y Y Y Y N N N N Valuable Rare Costly to Imitate N N N Y Organization

Y Y Y Y

N N N Y

N N N N

International Market 8 Share 9 Large Scale Operations 10 Strategic Alliances 11 Customer Service 12 Product Resale Value Human 1 Leadership Organizational 1 Supplier Relations 2 Dealer Relations Y Y Y Y Y Y Y Y N Y N N N Y N N N Y Y N Y Y N N Y Y N Y N Y Y Y

3 Union Workforce 4 Employee Benefits 5 Environmental Strategy Technological

Y Y Y

N N N

Y Y N

N N Y

1 Information Technology Y 2 Logistics Intangible 1 Brand Name 2 Corporate Values 3 Patents Y Y Y Y

N N Y N N

N N Y N Y

Y Y N Y N

Multiple Markets

Core Competence

Economic Performance

Strength/ Weakness

Y N N Y

N N N N

Neutral Lower Costs Higher Costs Higher Prices

Neutral Strength Weakness Strength

Y Y Y Y Y Y N

N Y Y N N N N

Higher Costs Higher Prices Higher Prices Higher Costs Higher Costs Higher Costs Higher Costs

Strength Strength Strength Weakness Weakness Weakness Strength

Y Y Y Y Y Y Y Y

N Y N N N Y N N

Neutral Lower Costs Higher Costs Higher Costs Lower Price Higher Costs Lower Costs Higher Prices

Strength Strength Strength Strength Weakness Strength Weakness Weakness

Y N Y

N N N

Higher Cost Higher Cost Neutral

Weakness Weakness Strength

Y Y Y Y N

N N N N N

Lower Cost Lower Cost Neutral Neutral Higher Prices

Strength Strength Weakness Strength Strength

OPERASI
No. Resource/Capability 1 Economic of Scales 2 Diseconomies of Scales 3 Learning Curve Economies 4 Differential Input Access 5 Technology 6 Policy Choices Valuable Rare Y Y Y Y N N N Y Exploited by Multiple Costly to Organization Markets Imitate N N Y N N Y N N N N N Y

Core

Economic

Strength/ Weakness Neutral Strength Weakness Strength

Competence Performance N N N N Neutral Lower Costs Higher Costs Higher Prices