VRIO Analysis of Iron Mountain
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Iron Mountain will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Iron Mountain 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 Iron Mountain VRIO Analysis shows that the financial resources of Iron Mountain are highly valuable as these help in investing into external opportunities that arise. These also help Iron Mountain in combating external threats.
- According to the VRIO Analysis of Iron Mountain, 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 Iron Mountain VRIO Analysis shows that Iron Mountain'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 Iron Mountain's products.
- According to the VRIO Analysis of Iron Mountain, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Iron Mountain. These patents also provide Iron Mountain with licensing revenue when it licenses these patents out to other manufacturers.
- The Iron Mountain VRIO Analysis shows that Iron Mountain’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Iron Mountain. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Iron Mountain, 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 Iron Mountain VRIO Analysis shows that the research and development at Iron Mountain 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 Iron Mountain. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Iron Mountain are found to be rare according to the VRIO Analysis of Iron Mountain. 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 Iron Mountain 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 Iron Mountain and inhibit competitive advantage. This means that the local food products result in competitive parity for Iron Mountain. As this resource is valuable, Iron Mountain can still make use of this resource.
- The employees of Iron Mountain are a rare resource as identified by the VRIO Analysis of Iron Mountain. 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 Iron Mountain are a rare resource as identified by the Iron Mountain VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Iron Mountain to use them without interference from the competition.
- The distribution network of Iron Mountain is a rare resource as identified by the VRIO Analysis of Iron Mountain. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Iron Mountain. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Iron Mountain are costly to imitate as identified by the Iron Mountain 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 Iron Mountain. 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 Iron Mountain provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Iron Mountain are also not costly to imitate as identified by the Iron Mountain VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Iron Mountain by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Iron Mountain a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Iron Mountain are very difficult to imitate as identified by the VRIO Analysis of Iron Mountain. 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 Iron Mountain is also very costly to imitate by competition as identified by the Iron Mountain VRIO Analysis. This has been developed over the years gradually by Iron Mountain. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Iron Mountain are organised to capture value as identified by the VRIO Analysis of Iron Mountain. 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 Iron Mountain.
- The Patents of Iron Mountain are not well organised as identified by the Iron Mountain 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 Iron Mountain starts selling patented products before the patents expire.
- The distribution network of Iron Mountain is organised as identified by the VRIO Analysis of Iron Mountain. Iron Mountain 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 Iron Mountain.
From the VRIO Analysis of Iron Mountain, 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 Iron Mountain is a competitive disadvantage. Research and Development is also a competitive disadvantage.
Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here.
Harper Leung
5.0
This firm forced my professor by writing a good paper to give the highest marks and made my name at the top in the result list.
Aiguo Peizhi
5.0
I'm delighted with the result. Thank you for the deliverance of amazing work—just an overall pleasant experience.
Geming
5.0
There was an issue with the referencing style but this service sorted it out. Professional manner and outstanding job!
Annie Micheal
5.0
This website is user friendly. Quick and easy process. The paper was delivered on time. I am delighted. Thanks a lot!
Next Articles
- Carlyle Group Vrio Analysis
- Brinker International Vrio Analysis
- Northern Tier Energy Vrio Analysis
- LinkedIn Vrio Analysis
- Service Corp International Vrio Analysis
- Stericycle Vrio Analysis
- Sabre Vrio Analysis
- Graham Holdings Vrio Analysis
- Taylor Morrison Home Vrio Analysis
- Cooper Tire & Rubber Vrio Analysis
Previous Articles
- Mercury General Vrio Analysis
- NOW Vrio Analysis
- Carters Vrio Analysis
- Unisys Vrio Analysis
- Scotts Miracle Gro Vrio Analysis
- American National Insurance Vrio Analysis
- Scripps Networks Interactive Vrio Analysis
- Genesco Vrio Analysis
- International Flavors & Fragrances Vrio Analysis
- Metaldyne Performance Group Vrio Analysis
Be a great writer or hire a greater one!
Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.
Our Guarantees
Interesting Fact
Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!