How do you benchmark your VR performance against your competitors and best practices?

1 VRIO framework

The VRIO framework is a strategic tool that evaluates the value, rarity, imitability, and organization of your VR resources and capabilities. It helps you determine whether your VR assets can give you a sustained competitive advantage over your competitors. To use the VRIO framework, you need to ask four questions for each VR resource or capability: whether it enables you to exploit an opportunity or neutralize a threat in your VR market, if it is scarce or unique among your VR competitors, if it is costly or difficult for your VR competitors to copy or substitute, and if your VR firm is organized to capture the value of the resource or capability. If you answer yes to all four questions, you have a VR resource or capability that can give you a long-term competitive advantage. However, if you answer yes to some but not all, you have a VR resource or capability that can give you a temporary or partial competitive advantage. If you answer no to any of the questions, you have a VR resource or capability that is not a source of competitive advantage.

2 Porter's five forces

Porter's five forces is a strategic tool that analyzes the competitive intensity and attractiveness of the VR industry. It helps identify the five forces that shape the profitability and dynamics of the VR market, such as rivalry, threat of entry, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. To use Porter's five forces, you need to assess the strength of each force and how it affects your VR position and strategy. The stronger the force, the more pressure it puts on your VR profitability and attractiveness, while the weaker the force, the more opportunity it creates for your VR differentiation and growth.

3 How to use VRIO and Porter's five forces together

The VRIO framework and Porter's five forces are complementary tools that can help you conduct a comprehensive and holistic competitive analysis for your VR business. To do this, you should first identify your VR resources and capabilities using the VRIO framework, which will help you understand your internal strengths and weaknesses. Then, analyze your VR industry structure and attractiveness using Porter's five forces to understand your external opportunities and threats. After that, compare your VR resources and capabilities with those of your competitors and best practices using both tools to benchmark your performance and identify your gaps. Finally, develop and implement your VR strategy based on your competitive analysis using both tools to leverage your strengths, exploit your opportunities, and counter your threats. By using the VRIO framework and Porter's five forces together, you can gain a deeper and broader insight into your VR competitive situation and potential, as well as monitor and evaluate your progress and performance over time.