VRIO Analysis of H-E-B Creating a Movement to Reduce Obesity in Texas

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of H-E-B Creating a Movement to Reduce Obesity in Texas are organised to capture value as identified by the VRIO Analysis of H-E-B Creating a Movement to Reduce Obesity in Texas. 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 H-E-B Creating a Movement to Reduce Obesity in Texas.
• The Patents of H-E-B Creating a Movement to Reduce Obesity in Texas are not well organised as identified by the H-E-B Creating a Movement to Reduce Obesity in Texas 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 H-E-B Creating a Movement to Reduce Obesity in Texas starts selling patented products before the patents expire.
• The distribution network of H-E-B Creating a Movement to Reduce Obesity in Texas is organised as identified by the VRIO Analysis of H-E-B Creating a Movement to Reduce Obesity in Texas. H-E-B Creating a Movement to Reduce Obesity in Texas 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 H-E-B Creating a Movement to Reduce Obesity in Texas.

From the VRIO Analysis of H-E-B Creating a Movement to Reduce Obesity in Texas, 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 H-E-B Creating a Movement to Reduce Obesity in Texas is a competitive disadvantage. Research and Development is also a competitive disadvantage.