On the other hand, looking inwardly, the analytical framework is VRIO, which in essence allows for an examination of the internal state of a firm, in this case Apple, with a focus on capabilities and resources inside the firm, and what among those can be sources of competitive advantage that is sustainable. VRIO stands for Valuable, Rare, Expensive to Imitate, and Organized with regard to the value capture. At its core the VRIO framework is a way of gauging the internal resources as well as capabilities of the firm, with each of the categories in the VRIO acting as a kind of criterion that is also a test for funneling the resource through the criteria (Pesic, Milic and Stankovic 2012). A resource that meets all of the criteria in the framework is a source of competitive advantage that is sustainable. On the other hand, a resource that fails one of the criteria is a source of competitive advantage but only temporarily (Jurevicius 2013; Powalla and Bresser 2010).One can look at the controversial launch of the Apple Watch and the debate among industry pundits and business analysts regarding the financial, marketing and technical aspects of the product to get an idea of the complex dynamics of coming up with new products and innovations at Apple that truly leverage great internal strengths to come up with a source of competitive advantage that is sustainable in the long run. On the surface one can immediately say of course that Apple’s brand strength in itself is a great internal resource that is also a great fount of competitive advantage, in. VRIO Analysis in the Context of Apples Key Strategic Dilemmas.
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