Based on the VRIO framework, which of the following start-up companies has the least potential to have a competitive advantage, to be profitable, and to grow?
A. a cat-sitting service, where you take care of people's cats when they are on vacation; you decide to advertise your services on Craigslist and the local newspaper
B. a "companionship" service for elderly people who live alone because their children are busy working full-time jobs; working adults say such a service would be extremely valuable
C. the only farm within a 100-mile radius that offers its customers organic beef and organic dairy products such as eggs and milk; no other local company offers these products
D. a portrait-painting service by a talented artist who is known for his ability to make all men look handsome and all women look beautiful; very few other artists in the local area have this talent
E. an enrichment program for children that hires talented people and sends each of them to a different school each day of the week; a web-based app helps the manager keep track of all the employees' schedules and locations
A. a cat-sitting service, where you take care of people's cats when they are on vacation; you decide to advertise your services on Craigslist and the local newspaper
VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about is Value, Rarity, Imitability, and Organization (VRIO). The cat-sitting service is easily imitated and therefore does not pass the VRIO test.
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