Toyota and Honda both have the capabilities to build cars of high quality at relatively low cost and their products regularly beat rival firms' products in both short-term and long-term quality ratings. Which VRIO quality does this represent? Group of answer choices: 1) Inimitable 2) Organization 3) Valuable 4) Rare

Question

Gaven Rose

Business

24 September, 20:21

Toyota and Honda both have the capabilities to build cars of high quality at relatively low cost and their products regularly beat rival firms' products in both short-term and long-term quality ratings. Which VRIO quality does this represent? Group of answer choices: 1) Inimitable 2) Organization 3) Valuable 4) Rare

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Answers (1)

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Julio Marquez · Answer 1

Rare

Explanation:

VRIO Analysis is an analytical technique for the evaluation of company's resources and thus the competitive advantage. VRIO comes from the initials of the evaluation dimensions: Value, Rareness, Imitability, Organization.

A resource is rare simply if it is not widely possessed by other competitors. When a firm has valuable resources that are rare in the industry, they are in a position of competitive advantage over firms that do not have the resource.