Internal Environment Analysis
Record Strengths (VRIN-rated) and Weaknesses across your value chain. Core competencies = VRIN only.
What is VRIN? (used for strengths only)
V = Valuable (i) — helps leverage opportunities and/or neutralize threats.
R = Rare (i) — not widely possessed by competitors.
I = Inimitable (i) — difficult for rivals to replicate quickly.
N = Non-substitutable (i) — no strategic alternative with equivalent effect.
Pick only these levels:
- V — Valuable but common → typically competitive parity.
- VR — Valuable + Rare but imitable → temporary advantage.
- VRI — Valuable + Rare + Inimitable but substitutable → temporary advantage until substitutes diffuse.
- VRIN — V+R+I+N → more durable advantage.
Quick tests:
V: Would losing it hurt value or raise cost?
R: Do < 20–30% of close rivals have it today?
I: Can a capable rival copy it in < 12–18 months?
N: Are there different ways to get the same outcome?
Apply VRIN to strengths only. Weaknesses are captured without VRIN.
Apply VRIN levels to strengths only. Weaknesses are captured without VRIN.