VRIO Analysis of Lance Armstrong and Livestrong Foundation Rising Again After the Fall

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Lance Armstrong and Livestrong Foundation Rising Again After the Fall are organised to capture value as identified by the VRIO Analysis of Lance Armstrong and Livestrong Foundation Rising Again After the Fall. 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 Lance Armstrong and Livestrong Foundation Rising Again After the Fall.
• The Patents of Lance Armstrong and Livestrong Foundation Rising Again After the Fall are not well organised as identified by the Lance Armstrong and Livestrong Foundation Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation Rising Again After the Fall starts selling patented products before the patents expire.
• The distribution network of Lance Armstrong and Livestrong Foundation Rising Again After the Fall is organised as identified by the VRIO Analysis of Lance Armstrong and Livestrong Foundation Rising Again After the Fall. Lance Armstrong and Livestrong Foundation Rising Again After the Fall 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 Lance Armstrong and Livestrong Foundation Rising Again After the Fall.

From the VRIO Analysis of Lance Armstrong and Livestrong Foundation Rising Again After the Fall, 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 Lance Armstrong and Livestrong Foundation Rising Again After the Fall is a competitive disadvantage. Research and Development is also a competitive disadvantage.