VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes VRIO Analysis shows that the financial resources of PepsiCo Peru Foods More than Small Potatoes are highly valuable as these help in investing into external opportunities that arise. These also help PepsiCo Peru Foods More than Small Potatoes in combating external threats.
• According to the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes, 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 PepsiCo Peru Foods More than Small Potatoes VRIO Analysis shows that PepsiCo Peru Foods More than Small Potatoes'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 PepsiCo Peru Foods More than Small Potatoes's products.
• According to the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for PepsiCo Peru Foods More than Small Potatoes. These patents also provide PepsiCo Peru Foods More than Small Potatoes with licensing revenue when it licenses these patents out to other manufacturers.
• The PepsiCo Peru Foods More than Small Potatoes VRIO Analysis shows that PepsiCo Peru Foods More than Small Potatoes’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for PepsiCo Peru Foods More than Small Potatoes. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes, 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 PepsiCo Peru Foods More than Small Potatoes VRIO Analysis shows that the research and development at PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

• The financial resources of PepsiCo Peru Foods More than Small Potatoes are found to be rare according to the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. 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 PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes and inhibit competitive advantage. This means that the local food products result in competitive parity for PepsiCo Peru Foods More than Small Potatoes. As this resource is valuable, PepsiCo Peru Foods More than Small Potatoes can still make use of this resource.
• The employees of PepsiCo Peru Foods More than Small Potatoes are a rare resource as identified by the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. 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 PepsiCo Peru Foods More than Small Potatoes are a rare resource as identified by the PepsiCo Peru Foods More than Small Potatoes VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows PepsiCo Peru Foods More than Small Potatoes to use them without interference from the competition.
• The distribution network of PepsiCo Peru Foods More than Small Potatoes is a rare resource as identified by the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of PepsiCo Peru Foods More than Small Potatoes. These are also possessed by very few firms in the industry.

Imitable

• The financial resources of PepsiCo Peru Foods More than Small Potatoes are costly to imitate as identified by the PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes. 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 PepsiCo Peru Foods More than Small Potatoes provide it with a temporary competitive advantage that competitors can too acquire in the long run.
• The employees of PepsiCo Peru Foods More than Small Potatoes are also not costly to imitate as identified by the PepsiCo Peru Foods More than Small Potatoes VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from PepsiCo Peru Foods More than Small Potatoes by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of PepsiCo Peru Foods More than Small Potatoes a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
• The patents of PepsiCo Peru Foods More than Small Potatoes are very difficult to imitate as identified by the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. 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 PepsiCo Peru Foods More than Small Potatoes is also very costly to imitate by competition as identified by the PepsiCo Peru Foods More than Small Potatoes VRIO Analysis. This has been developed over the years gradually by PepsiCo Peru Foods More than Small Potatoes. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.

Organisation

• The financial resources of PepsiCo Peru Foods More than Small Potatoes are organised to capture value as identified by the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. 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 PepsiCo Peru Foods More than Small Potatoes.
• The Patents of PepsiCo Peru Foods More than Small Potatoes are not well organised as identified by the PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes starts selling patented products before the patents expire.
• The distribution network of PepsiCo Peru Foods More than Small Potatoes is organised as identified by the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes. PepsiCo Peru Foods More than Small Potatoes 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 PepsiCo Peru Foods More than Small Potatoes.

From the VRIO Analysis of PepsiCo Peru Foods More than Small Potatoes, 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 PepsiCo Peru Foods More than Small Potatoes is a competitive disadvantage. Research and Development is also a competitive disadvantage.