VRIO Analysis of Abbott Laboratories
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Abbott Laboratories will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Abbott Laboratories 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 Abbott Laboratories VRIO Analysis shows that the financial resources of Abbott Laboratories are highly valuable as these help in investing into external opportunities that arise. These also help Abbott Laboratories in combating external threats.
- According to the VRIO Analysis of Abbott Laboratories, 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 Abbott Laboratories VRIO Analysis shows that Abbott Laboratories'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 Abbott Laboratories's products.
- According to the VRIO Analysis of Abbott Laboratories, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Abbott Laboratories. These patents also provide Abbott Laboratories with licensing revenue when it licenses these patents out to other manufacturers.
- The Abbott Laboratories VRIO Analysis shows that Abbott Laboratories’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Abbott Laboratories. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Abbott Laboratories, 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 Abbott Laboratories VRIO Analysis shows that the research and development at Abbott Laboratories 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 Abbott Laboratories. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Abbott Laboratories are found to be rare according to the VRIO Analysis of Abbott Laboratories. 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 Abbott Laboratories 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 Abbott Laboratories and inhibit competitive advantage. This means that the local food products result in competitive parity for Abbott Laboratories. As this resource is valuable, Abbott Laboratories can still make use of this resource.
- The employees of Abbott Laboratories are a rare resource as identified by the VRIO Analysis of Abbott Laboratories. 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 Abbott Laboratories are a rare resource as identified by the Abbott Laboratories VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Abbott Laboratories to use them without interference from the competition.
- The distribution network of Abbott Laboratories is a rare resource as identified by the VRIO Analysis of Abbott Laboratories. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Abbott Laboratories. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Abbott Laboratories are costly to imitate as identified by the Abbott Laboratories 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 Abbott Laboratories. 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 Abbott Laboratories provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Abbott Laboratories are also not costly to imitate as identified by the Abbott Laboratories VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Abbott Laboratories by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Abbott Laboratories a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Abbott Laboratories are very difficult to imitate as identified by the VRIO Analysis of Abbott Laboratories. 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 Abbott Laboratories is also very costly to imitate by competition as identified by the Abbott Laboratories VRIO Analysis. This has been developed over the years gradually by Abbott Laboratories. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Abbott Laboratories are organised to capture value as identified by the VRIO Analysis of Abbott Laboratories. 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 Abbott Laboratories.
- The Patents of Abbott Laboratories are not well organised as identified by the Abbott Laboratories 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 Abbott Laboratories starts selling patented products before the patents expire.
- The distribution network of Abbott Laboratories is organised as identified by the VRIO Analysis of Abbott Laboratories. Abbott Laboratories 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 Abbott Laboratories.
From the VRIO Analysis of Abbott Laboratories, 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 Abbott Laboratories 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.
Arlo Luis
5.0
The writing expression of my project was completely mature and the teacher got dubious on the document. He asked a few questions regarding the paper and I gave the answer and he said that "hardworking student". Thanks!
Antonio Paolo
5.0
This company saved me several times and I'm well pleased with it. Excellent result!
Kalyan Selim
5.0
I have been using this service for the last year and never get fewer marks from the expectations. Amazing team. I'll appreciate this service on the platform of Trustpilot & Sitejabber.
Paul Boris
5.0
The assignment was completed with very knowledgeable material. Impressed by their work, fast and efficient! Thanks a lot!
Next Articles
- Arbutus Biopharma Corporation Vrio Analysis
- ACADIA Pharmaceuticals Inc. Vrio Analysis
- Acadia Healthcare Company, Inc. Vrio Analysis
- Achillion Pharmaceuticals, Inc. Vrio Analysis
- AC Immune SA Vrio Analysis
- Acorda Therapeutics, Inc. Vrio Analysis
- Aclaris Therapeutics, Inc. Vrio Analysis
- AcelRx Pharmaceuticals, Inc. Vrio Analysis
- Acasti Pharma Inc. Vrio Analysis
- Adaptimmune Therapeutics Plc Vrio Analysis
Previous Articles
- ABIOMED, Inc. Vrio Analysis
- ARCA Biopharma, Inc. Vrio Analysis
- Abeona Therapeutics Inc. Vrio Analysis
- AbbVie Inc. Vrio Analysis
- Abaxis, Inc. Vrio Analysis
- AAC Holdings, Inc. Vrio Analysis
- Advanced Accelerator Applications S.A. Vrio Analysis
- Agilent Technologies, Inc. Vrio Analysis
- OneBeacon Insurance Group, Ltd. Vrio Analysis
- NMI Holdings, 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!