VRIO Analysis of INTL FCStone Inc
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of INTL FCStone Inc will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The INTL FCStone Inc 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 INTL FCStone Inc VRIO Analysis shows that the financial resources of INTL FCStone Inc are highly valuable as these help in investing into external opportunities that arise. These also help INTL FCStone Inc in combating external threats.
- According to the VRIO Analysis of INTL FCStone Inc, 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 INTL FCStone Inc VRIO Analysis shows that INTL FCStone Inc'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 INTL FCStone Inc's products.
- According to the VRIO Analysis of INTL FCStone Inc, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for INTL FCStone Inc. These patents also provide INTL FCStone Inc with licensing revenue when it licenses these patents out to other manufacturers.
- The INTL FCStone Inc VRIO Analysis shows that INTL FCStone Inc’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for INTL FCStone Inc. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of INTL FCStone Inc, 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 INTL FCStone Inc VRIO Analysis shows that the research and development at INTL FCStone Inc 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 INTL FCStone Inc. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of INTL FCStone Inc are found to be rare according to the VRIO Analysis of INTL FCStone Inc. 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 INTL FCStone Inc 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 INTL FCStone Inc and inhibit competitive advantage. This means that the local food products result in competitive parity for INTL FCStone Inc. As this resource is valuable, INTL FCStone Inc can still make use of this resource.
- The employees of INTL FCStone Inc are a rare resource as identified by the VRIO Analysis of INTL FCStone Inc. 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 INTL FCStone Inc are a rare resource as identified by the INTL FCStone Inc VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows INTL FCStone Inc to use them without interference from the competition.
- The distribution network of INTL FCStone Inc is a rare resource as identified by the VRIO Analysis of INTL FCStone Inc. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of INTL FCStone Inc. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of INTL FCStone Inc are costly to imitate as identified by the INTL FCStone Inc 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 INTL FCStone Inc. 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 INTL FCStone Inc provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of INTL FCStone Inc are also not costly to imitate as identified by the INTL FCStone Inc VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from INTL FCStone Inc by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of INTL FCStone Inc a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of INTL FCStone Inc are very difficult to imitate as identified by the VRIO Analysis of INTL FCStone Inc. 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 INTL FCStone Inc is also very costly to imitate by competition as identified by the INTL FCStone Inc VRIO Analysis. This has been developed over the years gradually by INTL FCStone Inc. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of INTL FCStone Inc are organised to capture value as identified by the VRIO Analysis of INTL FCStone Inc. 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 INTL FCStone Inc.
- The Patents of INTL FCStone Inc are not well organised as identified by the INTL FCStone Inc 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 INTL FCStone Inc starts selling patented products before the patents expire.
- The distribution network of INTL FCStone Inc is organised as identified by the VRIO Analysis of INTL FCStone Inc. INTL FCStone Inc 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 INTL FCStone Inc.
From the VRIO Analysis of INTL FCStone Inc, 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 INTL FCStone Inc 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.
Aaron Maxim
5.0
Ordered a couple of papers and frankly speaking, the expert was truly determined for the job and asked many questions from me concerning assignments. Sad, I said that I just need a good paper. Thanks a lot!
Lily Raymon
5.0
I was trying to deal with the assignment by myself and stressed. I allowed them to deal with the paper and were very pleased. Thank you very much!
Hanna Arnold
5.0
Outstanding experience! The expert was very responsive and I’ll use this service for Finance coursework again.
Brianna Shane
5.0
Simply the best paper writing help! Good writers, excellent support team & I'm fully happy with the delivery system. Thanks a lot!
Next Articles
- Invesco BuyBack Achievers ETF Vrio Analysis
- Invesco Dividend Achievers ETF Vrio Analysis
- Invesco DWA Momentum ETF Vrio Analysis
- Invesco Global Agriculture ETF Vrio Analysis
- Invesco Global Water ETF Vrio Analysis
- Invesco Golden Dragon China ETF Vrio Analysis
- Invesco KBW Bank ETF Vrio Analysis
- Invesco Nasdaq Internet ETF Vrio Analysis
- Invesco QQQ Trust, Series 1 Vrio Analysis
- Invesco Strategic US ETF Vrio Analysis
Previous Articles
- Interstate Power And Light Company Vrio Analysis
- Interlink Electronics, Inc. Vrio Analysis
- Inspired Entertainment, Inc. Vrio Analysis
- Innovate Biopharmaceuticals, Inc. Vrio Analysis
- Infrastructure And Energy Alternatives, Inc. Vrio Analysis
- InflaRx N.V. Vrio Analysis
- Industrial Logistics Properties Trust Vrio Analysis
- IMV Inc. Vrio Analysis
- IFresh Inc. Vrio Analysis
- Ideanomics, Inc. 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!