At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match that company's service. Which part of a VRIO analysis helped Rohan evaluate this idea?

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yiseldelgado8428 yiseldelgado8428

24-04-2020
Business

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At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match that company's service. Which part of a VRIO analysis helped Rohan evaluate this idea?

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sholanejo sholanejo · Answer 1 · 2020-05-02T03:16:26+02:00

Answer: The R part which stands for RARENESS/RARITY.

Explanation: The VRIO analysis is an acronym for Value, Rareness, Imitability, Organization.

This analysis is used in the evaluation of a business resources and factors that places it above their competition.

The rareness/rarity begs to question if the resource used in business are in the hands of a few.

In this question, Rohan was looking to expand his business by adding a pick-up service but by asking the rareness question, he discovered that the competitive advantage is in the hands of another business Tow-It-Now Inc.