VRINE Model

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): 

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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.

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Inimitability and Non-substitutability: ‘A valuable and rare resource or capability will grant an advantage only so long as competitors don’t gain possession of it or find a close substitute’. As we can see that those two components are relative to the first two ones which define the availability of the unique resources through their Value and Rarity. Since an organization has this type of resources, it will be in a good position to be Inimitable and Non-substitutable till those resources become available for everyone or at least for some competitors causing the loss of the value of those resource.

Exploitability: ‘The firm must be able to nurture and take advantage of the resources and capabilities that it posses’. As a result of the previous four components, an organization should be able to get the required benefits of its valuable and rare resources.

Otherwise, all efforts spent to find those resources, to help them and to invest extra costs (since they are unique and rare to be found) will be useless if no Exploitability will be towards this organization.

Through the aforementioned, VRINE Model focuses basically on Resources and Capabilities required to achieve a unique product among many ambitious competitors which are running to catch the market from a specific organization. The one which has those resources and capabilities will get the required benefit till they become normal and available for others.

VRINE Model can be considered as a model for Strategic Leadership and Business Transformation.

References List Carpenter, M.A. and Sanders, W.G., 2009. Strategic Management: a Dynamic Perspective Concepts and Cases. 2nd Upper Saddle River, N.J.: Pearson Prentice Hall.