<Li> threat of rivalry, </Li> <Li> threat of substitutes . </Li> <P> Generally, this exploitation of opportunity or mitigation of threat will result in one of two more outcomes: an increase in revenues or a decrease in costs (or both). </P> <P> A great way to identify possibly valuable resources or capabilities is by looking into the company's value chain . In the value chain, a business develops its products and services step - by - step, with each function along the way adding some sort of value to the product or service . The choices a firm makes regarding its value chain (including how to operate, and which steps to operate in) is closely tied to the firms resources and capabilities, therefore making it a valuable tool in identifying value in resources and capabilities . If some asset that the company has allows it to operate more effectively in a certain portion of the value chain, chances are that resource will be considered valuable by the VRIO framework . </P>

Discuss the use vrio framework for analyzing resources and capabilities