1) Â Define and explain the importance of the VRIN model.
Example of answer– The VRIN model stands for how Valuable, Rare, Inimitable, and non-substitutable a competitive advantage is.Â This model is important because it helps determine what your competitive advantage is and how sustainable it is. How valuable a resource is and how relevant this resource, product, or asset is to a company’s strategy. How rare a resource is something that your rivals lack and isn’t easily accessible. How Inimitable a resource is determined is your rivals can easily reproduce or copy the resource, product, or asset. How non-substitutable a resource is how hard it is for this resource, product, or asset to be substituted by another resource or capability.
2) Â Define and explain the importance of dynamic capabilities.
Example of answer– Â Dynamic capabilities are important because they allow companies to keep their competitive advantages and grow through continuous improvement. Even though they may hold a resource that others don’t have at the beginning if left mismanaged it can depreciate like all other assets.
3) Â Define and give an example of Best Cost Provider
4) Â Define and give an example of Broad Differentiation.
5) Â Define and give an example of Focused Cost Leadership.
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