Definition
RBV holds that sustainable advantage stems from resources/capabilities that are Valuable, Rare, Inimitable, and Organized to capture value (VRIO).

Introduction
Markets shift, but capabilities travel. RBV shifts the strategy lens inward: build a capability system competitors can’t easily copy.

Explanation

Inventory resources: physical, human, organizational, intangible, data.

VRIO test: value (improves WTP/cost), rarity (few have), inimitability (barriers: causal ambiguity, path dependence, social complexity), organization (processes, incentives).

Strategic actions: invest to upgrade VRIO assets, protect (IP, secrecy), orchestrate complements, monetize via platforms/licensing.

Avoid core rigidities: renew via learning, acquisitions, and tech infusion.

Key Takeaways

Compete on systems of capability, not isolated assets.

Inimitability often lives in culture/routines/data moats.

Keep renewing to avoid decay.

Real-World Case
A marketplace’s trust & safety + anti-fraud models (data + teams + tooling) pass VRIO and underpin take-rate and retention advantages.