VRIO Analysis of GWG Holdings Inc
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of GWG Holdings Inc will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The GWG Holdings 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 GWG Holdings Inc VRIO Analysis shows that the financial resources of GWG Holdings Inc are highly valuable as these help in investing into external opportunities that arise. These also help GWG Holdings Inc in combating external threats.
- According to the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc VRIO Analysis shows that GWG Holdings 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 GWG Holdings Inc's products.
- According to the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc. These patents also provide GWG Holdings Inc with licensing revenue when it licenses these patents out to other manufacturers.
- The GWG Holdings Inc VRIO Analysis shows that GWG Holdings Inc’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for GWG Holdings Inc. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc VRIO Analysis shows that the research and development at GWG Holdings 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 GWG Holdings Inc. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of GWG Holdings Inc are found to be rare according to the VRIO Analysis of GWG Holdings 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 GWG Holdings 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 GWG Holdings Inc and inhibit competitive advantage. This means that the local food products result in competitive parity for GWG Holdings Inc. As this resource is valuable, GWG Holdings Inc can still make use of this resource.
- The employees of GWG Holdings Inc are a rare resource as identified by the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc are a rare resource as identified by the GWG Holdings Inc VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows GWG Holdings Inc to use them without interference from the competition.
- The distribution network of GWG Holdings Inc is a rare resource as identified by the VRIO Analysis of GWG Holdings Inc. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of GWG Holdings Inc. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of GWG Holdings Inc are costly to imitate as identified by the GWG Holdings 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 GWG Holdings 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 GWG Holdings Inc provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of GWG Holdings Inc are also not costly to imitate as identified by the GWG Holdings Inc VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from GWG Holdings Inc by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of GWG Holdings Inc a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of GWG Holdings Inc are very difficult to imitate as identified by the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc is also very costly to imitate by competition as identified by the GWG Holdings Inc VRIO Analysis. This has been developed over the years gradually by GWG Holdings Inc. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of GWG Holdings Inc are organised to capture value as identified by the VRIO Analysis of GWG Holdings 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 GWG Holdings Inc.
- The Patents of GWG Holdings Inc are not well organised as identified by the GWG Holdings 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 GWG Holdings Inc starts selling patented products before the patents expire.
- The distribution network of GWG Holdings Inc is organised as identified by the VRIO Analysis of GWG Holdings Inc. GWG Holdings 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 GWG Holdings Inc.
From the VRIO Analysis of GWG Holdings 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 GWG Holdings 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.
Cannor Nicholas
5.0
I became a sandwich between the assignments and the household duties.I got freedom from this stress just because of you guys. Now, I’m posting a review with a smile. Thank you!
Liu Peng
5.0
The proposal would not have been approved yet if this service had not assisted me. Thanks for bringing me away from the boring activity.
Ruben Noam
5.0
Recently, I received the assignment of economics from them. There is no choice but to order this service for future documents because the paper was right.
Jessica Vincent
5.0
The job was well-accomplished and I'm happy that I obtained an A+ in the assignment (the first-ever good marks of my life). Thanks a lot!
Next Articles
- Independence Holding Company Vrio Analysis
- ING Groep N.V. Vrio Analysis
- China Life Insurance Company Limited Vrio Analysis
- Lincoln National Corporation Vrio Analysis
- MetLife, Inc. Vrio Analysis
- Manulife Financial Corporation Vrio Analysis
- National Western Life Group, Inc. Vrio Analysis
- Principal Financial Group, Inc. Vrio Analysis
- Primerica, Inc. Vrio Analysis
- Prudential Financial, Inc. Vrio Analysis
Previous Articles
- Genworth Financial, Inc. Vrio Analysis
- Fidelity & Guaranty Life Vrio Analysis
- FBL Financial Group, Inc. Vrio Analysis
- Citizens, Inc. Vrio Analysis
- American Equity Investment Life Holding Company Vrio Analysis
- AEGON N.V. Vrio Analysis
- Atlantic American Corporation Vrio Analysis
- Willis Towers Watson Public Limited Company Vrio Analysis
- Patriot National, Inc. Vrio Analysis
- Marsh & McLennan Companies, 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!