The document discusses the rarity element of the VRIO framework for competitive advantage. It provides an example of a health insurance industry with 100 competitors, where only 5 employ artificial intelligence technology. This resource is considered rare for the industry according to the VRIO framework criteria.

1. In VRIO framework of resourse based theory, R stands for Rarity, that is, your resource or
capability should be rare to generate sustained competetive advantage. Suppose in health
insurance industry there are 100 competitors, of which only 5 of them, employ artifical intelligence
technology. The technology resource is:
Select one:
a.rare for the industry
b.would be rare only if 1 of 10,000 had it.
c.not rare because 5 of them have it