VRIO Analysis of Dril-Quip Inc
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Dril-Quip Inc will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Dril-Quip 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 Dril-Quip Inc VRIO Analysis shows that the financial resources of Dril-Quip Inc are highly valuable as these help in investing into external opportunities that arise. These also help Dril-Quip Inc in combating external threats.
- According to the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc VRIO Analysis shows that Dril-Quip 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 Dril-Quip Inc's products.
- According to the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc. These patents also provide Dril-Quip Inc with licensing revenue when it licenses these patents out to other manufacturers.
- The Dril-Quip Inc VRIO Analysis shows that Dril-Quip Inc’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Dril-Quip Inc. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc VRIO Analysis shows that the research and development at Dril-Quip 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 Dril-Quip Inc. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Dril-Quip Inc are found to be rare according to the VRIO Analysis of Dril-Quip 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 Dril-Quip 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 Dril-Quip Inc and inhibit competitive advantage. This means that the local food products result in competitive parity for Dril-Quip Inc. As this resource is valuable, Dril-Quip Inc can still make use of this resource.
- The employees of Dril-Quip Inc are a rare resource as identified by the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc are a rare resource as identified by the Dril-Quip Inc VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Dril-Quip Inc to use them without interference from the competition.
- The distribution network of Dril-Quip Inc is a rare resource as identified by the VRIO Analysis of Dril-Quip Inc. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Dril-Quip Inc. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Dril-Quip Inc are costly to imitate as identified by the Dril-Quip 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 Dril-Quip 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 Dril-Quip Inc provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Dril-Quip Inc are also not costly to imitate as identified by the Dril-Quip Inc VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Dril-Quip Inc by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Dril-Quip Inc a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Dril-Quip Inc are very difficult to imitate as identified by the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc is also very costly to imitate by competition as identified by the Dril-Quip Inc VRIO Analysis. This has been developed over the years gradually by Dril-Quip Inc. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Dril-Quip Inc are organised to capture value as identified by the VRIO Analysis of Dril-Quip 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 Dril-Quip Inc.
- The Patents of Dril-Quip Inc are not well organised as identified by the Dril-Quip 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 Dril-Quip Inc starts selling patented products before the patents expire.
- The distribution network of Dril-Quip Inc is organised as identified by the VRIO Analysis of Dril-Quip Inc. Dril-Quip 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 Dril-Quip Inc.
From the VRIO Analysis of Dril-Quip 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 Dril-Quip 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.
Joshua Michael
5.0
I sent a layout to them and received an assignment. Everything is how as I expected. Thank you!
Lachlan Kristopher
5.0
I'm glad because always receive the work on time and without error.
Manchu Kang
5.0
Some websites show fake reviews and some others have negative comments. How to land on a trustable site was a difficult task. I pinned the faith on the support representative's promise and ordered them for a project. There is no contradiction in his words as the result of the paper is excellent.
Georgia Andrew
5.0
I love the style of writing of the customer that provided me great work. Thankful!
Next Articles
- Devon Energy Corporation Vrio Analysis
- Dawson Geophysical Company Vrio Analysis
- Eni S.p.A. Vrio Analysis
- Ecopetrol S.A. Vrio Analysis
- Encana Corporation Vrio Analysis
- Eclipse Resources Corporation Vrio Analysis
- ECA Marcellus Trust I Vrio Analysis
- Enbridge Energy Partners, L.P. Vrio Analysis
- Enbridge Energy Management, L.L.C. Vrio Analysis
- Entree Resources Ltd. Vrio Analysis
Previous Articles
- DRDGOLD Limited Vrio Analysis
- The Dow Chemical Company Vrio Analysis
- Diamond Offshore Drilling, Inc. Vrio Analysis
- Denbury Resources Inc. Vrio Analysis
- NOW Inc. Vrio Analysis
- Denison Mines Corp. Vrio Analysis
- Dominion Energy Midstream Partners, LP Vrio Analysis
- Delek Logistics Partners, LP Vrio Analysis
- Delek US Holdings, Inc. Vrio Analysis
- Delta Technology Holdings Limited 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!