VRIO Analysis of Chesapeake Utilities Corporation
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Chesapeake Utilities Corporation will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation VRIO Analysis shows that the financial resources of Chesapeake Utilities Corporation are highly valuable as these help in investing into external opportunities that arise. These also help Chesapeake Utilities Corporation in combating external threats.
- According to the VRIO Analysis of Chesapeake Utilities Corporation, 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 Chesapeake Utilities Corporation VRIO Analysis shows that Chesapeake Utilities Corporation'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 Chesapeake Utilities Corporation's products.
- According to the VRIO Analysis of Chesapeake Utilities Corporation, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Chesapeake Utilities Corporation. These patents also provide Chesapeake Utilities Corporation with licensing revenue when it licenses these patents out to other manufacturers.
- The Chesapeake Utilities Corporation VRIO Analysis shows that Chesapeake Utilities Corporation’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Chesapeake Utilities Corporation. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Chesapeake Utilities Corporation, 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 Chesapeake Utilities Corporation VRIO Analysis shows that the research and development at Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Chesapeake Utilities Corporation are found to be rare according to the VRIO Analysis of Chesapeake Utilities Corporation. 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 Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation and inhibit competitive advantage. This means that the local food products result in competitive parity for Chesapeake Utilities Corporation. As this resource is valuable, Chesapeake Utilities Corporation can still make use of this resource.
- The employees of Chesapeake Utilities Corporation are a rare resource as identified by the VRIO Analysis of Chesapeake Utilities Corporation. 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 Chesapeake Utilities Corporation are a rare resource as identified by the Chesapeake Utilities Corporation VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Chesapeake Utilities Corporation to use them without interference from the competition.
- The distribution network of Chesapeake Utilities Corporation is a rare resource as identified by the VRIO Analysis of Chesapeake Utilities Corporation. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Chesapeake Utilities Corporation. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Chesapeake Utilities Corporation are costly to imitate as identified by the Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation. 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 Chesapeake Utilities Corporation provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Chesapeake Utilities Corporation are also not costly to imitate as identified by the Chesapeake Utilities Corporation VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Chesapeake Utilities Corporation by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Chesapeake Utilities Corporation a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Chesapeake Utilities Corporation are very difficult to imitate as identified by the VRIO Analysis of Chesapeake Utilities Corporation. 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 Chesapeake Utilities Corporation is also very costly to imitate by competition as identified by the Chesapeake Utilities Corporation VRIO Analysis. This has been developed over the years gradually by Chesapeake Utilities Corporation. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Chesapeake Utilities Corporation are organised to capture value as identified by the VRIO Analysis of Chesapeake Utilities Corporation. 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 Chesapeake Utilities Corporation.
- The Patents of Chesapeake Utilities Corporation are not well organised as identified by the Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation starts selling patented products before the patents expire.
- The distribution network of Chesapeake Utilities Corporation is organised as identified by the VRIO Analysis of Chesapeake Utilities Corporation. Chesapeake Utilities Corporation 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 Chesapeake Utilities Corporation.
From the VRIO Analysis of Chesapeake Utilities Corporation, 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 Chesapeake Utilities Corporation 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.
Aaden John
5.0
Even don’t have a tiny issue with service!
Kellie Dale
5.0
I’m going to place a review here because you guys provided me an error-free work. Thank you so much!
Carly Marvin
5.0
On-time delivery and no extra fees for revision. How can a student wish for something else. Thanks!
Anja Chris
5.0
Quick response and I got my paper before the deadline. It was fine. I’m thankful for this!
Next Articles
- CPFL Energia S.A. Vrio Analysis
- Calpine Corporation Vrio Analysis
- Connecticut Water Service, Inc. Vrio Analysis
- Consolidated Water Co. Ltd. Vrio Analysis
- California Water Service Group Vrio Analysis
- Cosan Limited Vrio Analysis
- Dominion Energy, Inc. Vrio Analysis
- Delta Natural Gas Company, Inc. Vrio Analysis
- DTE Energy Company Vrio Analysis
- Duke Energy Corporation Vrio Analysis
Previous Articles
- CenterPoint Energy, Inc. Vrio Analysis
- CMS Energy Corporation Vrio Analysis
- Clean Energy Fuels Corp. Vrio Analysis
- Companhia Energetica De Minas Gerais Vrio Analysis
- Cadiz Inc. Vrio Analysis
- 8point3 Energy Partners LP Vrio Analysis
- Black Hills Corporation Vrio Analysis
- Brookfield Infrastructure Partners L.P. Vrio Analysis
- Brookfield Renewable Partners L.P. Vrio Analysis
- Azure Power Global 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!