Final answer:
The V-R-I-O in the VRIO framework stands for Value, Rarity, Imitability, and Organization, which are the criteria for evaluating a firm's resources for competitive potential.
Step-by-step explanation:
The letters V-R-I-O in the VRIO framework stand for Value, Rarity, Imitability, and Organization. The VRIO framework is a tool for analyzing a firm's resources in terms of their competitive potential. The framework evaluates whether a resource is:
- Valuable: Does the resource enable the firm to exploit an opportunity or neutralize a threat?
- Rare: Is the resource possessed by few if any competitors?
- Inimitable: Is the resource difficult for other firms to imitate or acquire?
- Organized: Is the firm organized to exploit the resource effectively?
When a resource aligns with all four attributes, it can sustain a firm's competitive advantage.