VRINE Model

Page 1

VRINE Model

Referring to Carpenter and Sanders (2009:102), ‘all competitors do not have access to the same resources and capabilities’. Starting from this fact, companies will make a difference in their products through using different types of resources. When we mention this, we always compare with similar organizations which produce the same product. Any organization will be in a better position to win the high competition among all competitors if it has more competitive and capable resources. VRINE Model is a framework which analyses the available resources through their capabilities and work levels. Referring to Carpenter and Sanders (2009:103), VRINE model refers to Value, Rarity, Inimitability, Non-substitutability and Exploitability. Through the following, we are going to have a quick view about the five components of VRINE Model based on Carpenter and Sanders (2009:104-108): 

Value: ‘A resource or capability is valuable if it enables a firm to take advantage of opportunities or to fend off threats in its environment’. To have valuable resources means to have resources which will support you in your competition against other competitors through the production process, whatever the type of production is. Valuable resources are the ones which are capable to do the required job within the required time, cost and quality; the three factors which control any project or product. Valuable resources will not be valuable till they show up the required commitments and achievement towards their organizations through their unique level at their work. Rarity: ‘Scarcity relative to demand’. To have rare resources means to have those resources where you cannot find them anywhere. If those resources were available for everyone, they will not be rare to find or to use. Those rare resources give a big advantage to any organization through its capacity to compete using those resources which are able to produce a unique product when other companies are not able due to the shortage of those resources.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.