Question

Here we see several aspects of the culture at Zappos. Now we apply the VRIO framework to the firm. What can be said about the VRIO of the Zappos culture?

a-Culture is rare but not hard to imitate for firms like Zappos.
b-Culture is interesting but not likely to provide a competitive advantage.
c-Culture of increasing customer value seems to be a sustained advantage.
d-Culture is valuable but not rare so it gives a temporary advantage.
e-Culture of cost leadership seems to be a sustained advantage.

Answer 1

Applying the VRIO framework to Zappos's culture indicates that it is a sustained competitive advantage. The culture is valuable and difficult to imitate, contributing to the company's success.

Step-by-step explanation:

When applying the VRIO framework to the culture at Zappos, it can be deduced that the culture is a sustained competitive advantage for the firm. Culture in a company like Zappos, known for its customer service and employee satisfaction, likely involves valuable practices that significantly increase customer value. These practices are cultivated internally and take time to develop, making them hard to imitate.

Therefore, the correct answer would be 'Culture of increasing customer value seems to be a sustained advantage' (option c). The rarity and difficulty to replicate Zappos's distinctive culture attributes to its competitive edge in the market. While other companies may recognize the value of a strong culture, creating an equivalent, authentic, and effective version is challenging.