VRIO Analysis of Rm2 International S A

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of Rm2 International S A will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Rm2 International S A VRIO Analysis also mentions at each stage whether these resources could be improved to provide a greater competitive advantage. Lastly, the resources analysed are summarised as to whether they offer sustained competitive advantage, has an unused competitive advantage, temporary competitive advantage, competitive parity or competitive disadvantage.

Valuable

• The Rm2 International S A VRIO Analysis shows that the financial resources of Rm2 International S A are highly valuable as these help in investing into external opportunities that arise. These also help Rm2 International S A in combating external threats.
• According to the VRIO Analysis of Rm2 International S A, its local food products are a valuable resource as these are highly differentiated. This makes the perceived value for these by customers high. These are also valued more than the competition by customers due to the differentiation in these products.
• The Rm2 International S A VRIO Analysis shows that Rm2 International S A's employees are a valuable resource to the firm. A significant portion of the workforce is highly trained, and this leads to more productive output for the organisation. The employees are also loyal, and retention levels for the organisation are high. All of this translates into greater value for the end consumers of Rm2 International S A's products.
• According to the VRIO Analysis of Rm2 International S A, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Rm2 International S A. These patents also provide Rm2 International S A with licensing revenue when it licenses these patents out to other manufacturers.
• The Rm2 International S A VRIO Analysis shows that Rm2 International S A’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Rm2 International S A. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of Rm2 International S A, its cost structure is not a valuable resource. This is because the methods of production lead to greater costs than that of competition, which affects the overall profits of the firm. Therefore, its cost structure is a competitive disadvantage that needs to be worked on.
• The Rm2 International S A VRIO Analysis shows that the research and development at Rm2 International S A is not a valuable resource. This is because research and development are costing more than the benefits it provides in the form of innovation. There have been very few innovative features and breakthrough products in the past few years. Therefore, research and development are a competitive disadvantage for Rm2 International S A. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

• The financial resources of Rm2 International S A are found to be rare according to the VRIO Analysis of Rm2 International S A. Strong financial resources are only possessed by a few companies in the industry.
• The local food products are found to be not rare as identified by Rm2 International S A VRIO Analysis. These are easily provided in the market by other competitors. This means that competitors can use these resources in the same way as Rm2 International S A and inhibit competitive advantage. This means that the local food products result in competitive parity for Rm2 International S A. As this resource is valuable, Rm2 International S A can still make use of this resource.
• The employees of Rm2 International S A are a rare resource as identified by the VRIO Analysis of Rm2 International S A. These employees are highly trained and skilled, which is not the case with employees in other firms. The better compensation and work environment ensure that these employees do not leave for other firms.
• The patents of Rm2 International S A are a rare resource as identified by the Rm2 International S A VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Rm2 International S A to use them without interference from the competition.
• The distribution network of Rm2 International S A is a rare resource as identified by the VRIO Analysis of Rm2 International S A. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Rm2 International S A. These are also possessed by very few firms in the industry.

Imitable

• The financial resources of Rm2 International S A are costly to imitate as identified by the Rm2 International S A VRIO Analysis. These resources have been acquired by the company through prolonged profits over the years. New entrants and competitors would require similar profits for a long period of time to accumulate these amounts of financial resources.
• The local food products are not that costly to imitate as identified by the VRIO Analysis of Rm2 International S A. These can be acquired by competitors as well if they invest a significant amount in research and development. These also do not require years long experience. Therefore, the local food products by Rm2 International S A provide it with a temporary competitive advantage that competitors can too acquire in the long run.
• The employees of Rm2 International S A are also not costly to imitate as identified by the Rm2 International S A VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Rm2 International S A by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Rm2 International S A a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
• The patents of Rm2 International S A are very difficult to imitate as identified by the VRIO Analysis of Rm2 International S A. This is because it is not legally allowed to imitate a patented product. Similar resources to be developed and getting a patent for them is also a costly process.
• The distribution network of Rm2 International S A is also very costly to imitate by competition as identified by the Rm2 International S A VRIO Analysis. This has been developed over the years gradually by Rm2 International S A. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.

Organisation

• The financial resources of Rm2 International S A are organised to capture value as identified by the VRIO Analysis of Rm2 International S A. These resources are used strategically to invest in the right places; making use of opportunities and combatting threats. Therefore, these resources prove to be a source of sustained competitive advantage for Rm2 International S A.
• The Patents of Rm2 International S A are not well organised as identified by the Rm2 International S A VRIO Analysis. This means that the organisation is not using these patents to their full potential. An unused competitive advantage exists that can be changed into a sustainable competitive advantage if Rm2 International S A starts selling patented products before the patents expire.
• The distribution network of Rm2 International S A is organised as identified by the VRIO Analysis of Rm2 International S A. Rm2 International S A uses this network to reach out to its customers by ensuring that products are available on all of its outlets. Therefore, these resources prove to be a source of sustained competitive advantage for Rm2 International S A.

From the VRIO Analysis of Rm2 International S A, it was identified that the financial resources and distribution network provide a sustained competitive advantage. The patents are a source of unused competitive advantage. There exists a temporary competitive advantage for employees. There exists a competitive parity for local food products. Lastly, the cost structure of Rm2 International S A is a competitive disadvantage. Research and Development is also a competitive disadvantage.