This week, our discussion thread is centered on the resource-based view (RBV) of the
firm and clarifying capabilities. Select a Saudi Arabian company with which you are
familiar and reinforce the approach to resource and capability analysis by appraising the
strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare,
Imitable, Organization) Framework (See Strategy Capsule 5.6).
Identify three key resources and/or capabilities of the company.
Explain each resource/capability’s score given the VRIO rubric. For instance,
does the resource/capability impart sufficient value, is the resource/capability rare, etc.
What is the likely competitive outcome for each resource/capability? That is,
given its VRIO score is it likely to impart a sustainable competitive advantage, a temporary
competitive advantage, competitive parity, or competitive disadvantage?
In your response to student posts, focus on the viability of the suggestions made by
other students: To which degree do these suggestions make sense regarding the possibility