VALUABLE (V). A resource is valuable if it helps a firm increase the perceived value of
its product or service in the eyes of consumers, either by adding attractive features or by
lowering price because the resource helps the firm lower its costs. By raising the perceived
value of the product, the resource increases the firm’s revenues, in turn increasing the
firm’s profitability (assuming costs are not increasing). If the resource allows the firm to
lower its cost, it also increases profitability (assuming perceived value is not decreasing).
Honda’s competency in designing and producing efficient engines increases the perceived
value of its products for consumers. That competency, supported by its lean manufacturing
system, enables quality to be designed and built directly into the product and also
helps Honda lower its costs. Thus, Honda’s competency in designing and building engines
is considered a valuable resource in the VRIO framework