VRIO Analysis of Artis REIT - Accounting for Investment Properties Under IFRS

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Artis REIT - Accounting for Investment Properties Under IFRS are organised to capture value as identified by the VRIO Analysis of Artis REIT - Accounting for Investment Properties Under IFRS. 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 Artis REIT - Accounting for Investment Properties Under IFRS.
• The Patents of Artis REIT - Accounting for Investment Properties Under IFRS are not well organised as identified by the Artis REIT - Accounting for Investment Properties Under IFRS 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 Artis REIT - Accounting for Investment Properties Under IFRS starts selling patented products before the patents expire.
• The distribution network of Artis REIT - Accounting for Investment Properties Under IFRS is organised as identified by the VRIO Analysis of Artis REIT - Accounting for Investment Properties Under IFRS. Artis REIT - Accounting for Investment Properties Under IFRS 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 Artis REIT - Accounting for Investment Properties Under IFRS.

From the VRIO Analysis of Artis REIT - Accounting for Investment Properties Under IFRS, 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 Artis REIT - Accounting for Investment Properties Under IFRS is a competitive disadvantage. Research and Development is also a competitive disadvantage.