VRIO Analysis of FGL Holdings
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of FGL Holdings will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The FGL Holdings 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 FGL Holdings VRIO Analysis shows that the financial resources of FGL Holdings are highly valuable as these help in investing into external opportunities that arise. These also help FGL Holdings in combating external threats.
- According to the VRIO Analysis of FGL Holdings, 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 FGL Holdings VRIO Analysis shows that FGL Holdings'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 FGL Holdings's products.
- According to the VRIO Analysis of FGL Holdings, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for FGL Holdings. These patents also provide FGL Holdings with licensing revenue when it licenses these patents out to other manufacturers.
- The FGL Holdings VRIO Analysis shows that FGL Holdings’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for FGL Holdings. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of FGL Holdings, 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 FGL Holdings VRIO Analysis shows that the research and development at FGL Holdings 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 FGL Holdings. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of FGL Holdings are found to be rare according to the VRIO Analysis of FGL Holdings. 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 FGL Holdings 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 FGL Holdings and inhibit competitive advantage. This means that the local food products result in competitive parity for FGL Holdings. As this resource is valuable, FGL Holdings can still make use of this resource.
- The employees of FGL Holdings are a rare resource as identified by the VRIO Analysis of FGL Holdings. 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 FGL Holdings are a rare resource as identified by the FGL Holdings VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows FGL Holdings to use them without interference from the competition.
- The distribution network of FGL Holdings is a rare resource as identified by the VRIO Analysis of FGL Holdings. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of FGL Holdings. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of FGL Holdings are costly to imitate as identified by the FGL Holdings 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 FGL Holdings. 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 FGL Holdings provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of FGL Holdings are also not costly to imitate as identified by the FGL Holdings VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from FGL Holdings by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of FGL Holdings a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of FGL Holdings are very difficult to imitate as identified by the VRIO Analysis of FGL Holdings. 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 FGL Holdings is also very costly to imitate by competition as identified by the FGL Holdings VRIO Analysis. This has been developed over the years gradually by FGL Holdings. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of FGL Holdings are organised to capture value as identified by the VRIO Analysis of FGL Holdings. 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 FGL Holdings.
- The Patents of FGL Holdings are not well organised as identified by the FGL Holdings 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 FGL Holdings starts selling patented products before the patents expire.
- The distribution network of FGL Holdings is organised as identified by the VRIO Analysis of FGL Holdings. FGL Holdings 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 FGL Holdings.
From the VRIO Analysis of FGL Holdings, 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 FGL Holdings 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.
Albie Tayler
5.0
A friend of mine suggested me this service and I was amazed when I received the work on time and didn't find a fault in it. Plenty of thanks!
Blake Barry
5.0
Everything is perfect but the writers are brilliant. A bundle of thanks!
Ruby Mason
5.0
The analysis of the topic carried me to get a good score in the paper. Thanks!
Austin Scott
5.0
The assignment was uploaded on time and the modification was done quickly. I’m indebted for this professional behaviour!
Next Articles
- Fiduciary/Claymore Energy Infrastructure Fund Vrio Analysis
- First American Corporation (The) Vrio Analysis
- First Industrial Realty Trust, Inc. Vrio Analysis
- First Trust Dynamic Europe Equity Income Fund Vrio Analysis
- First Trust Energy Infrastructure Fund Vrio Analysis
- First Trust High Income Long Short Fund Vrio Analysis
- First Trust Intermediate Duration Preferred & Income Fund Vrio Analysis
- First Trust MLP And Energy Income Fund Vrio Analysis
- First Trust New Opportunities MLP & Energy Fund Vrio Analysis
- Five Point Holdings, LLC Vrio Analysis
Previous Articles
- Federated Premier Municipal Income Fund Vrio Analysis
- Federated Investors, Inc. Vrio Analysis
- FB Financial Corporation Vrio Analysis
- Farmland Partners Inc. Vrio Analysis
- Farfetch Limited Vrio Analysis
- Far Point Acquisition Corporation Vrio Analysis
- Extra Space Storage Inc Vrio Analysis
- Exterran Corporation Vrio Analysis
- Exantas Capital Corp. Vrio Analysis
- Evoqua Water Technologies Corp. 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!