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ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Harlow Retail's logistics system is valuable and rare, and the firm exploits it well. Rivals could copy it within a year by buying similar software and hiring consultants. What does VRIO imply about the resource?

Because the system is valuable and rare and well exploited but easy for rivals to copy, it offers only a temporary competitive advantage. Once rivals imitate it, the benefit disappears, so sustained advantage would require a resource that is costly to imitate.

  1. ASustained competitive advantage
  2. BTemporary competitive advantageCorrect
  3. CCompetitive parity
  4. DCompetitive disadvantage

Explanation

The resource is valuable and rare, so it gives advantage, but it is not costly to imitate, so the advantage will be eroded. This is a temporary advantage. Sustained advantage would need inimitability; parity would apply if it were not rare.

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