Who came up with the VRIN famework?
This framework was developed in 1991 by Jay Barney, a researcher at the University of Utah. Barney identified four attributes that a company’s resources must possess for sustained competitive advantage. According to him, the resources must be valuable, rare, imperfectly imitable, and non-substitutable. Jay called his original framework VRIN.
Note: the VRIN is sometimes referred to as valuable, rarity, imitability, and organization (VRIO). However, this article will focus on Jay Barney’s original definition of strategic competitive advantage.
What is an example of a company that meets the VRIN model?
Walmart Inc as an example of an organization that has maintained a long term strategic competitive advantage in the retail industry. Walmart continues to deliver quality merchandise for the lowest prices possible. In addition to building a reputation for low prices, it also maintains strong processes in terms of logistics, supply chain management, and operational efficiency.
According to MBA Skool.com, in 2022, Walmart Inc was considered the world’s most successful retailer with over 11000 stores. The retail giant also operates across 25 countries under 50+ names. What’s more, Walmart has generated $500 billion in revenues in 2022 and has established itself as the world’s largest retail company by the Fortune Global 500 list.
What makes Walmart strategically competitive versus its competitors?
Walmart has developed many processes and capabilities that reliably provide VRIN-type value to its customers. As mentioned earlier, it sells products at consistently lower prices than any of its competitors and has done so for decades. Further, Walmart does not rely on schemes or sales to attract and retain customers; customers are loyal to the brand.
