- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
VRIO Analysis of Rakuten
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Rakuten will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Rakuten 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 Rakuten VRIO Analysis shows that the financial resources of Rakuten are highly valuable as these help in investing into external opportunities that arise. These also help Rakuten in combating external threats.
- According to the VRIO Analysis of Rakuten, 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 Rakuten VRIO Analysis shows that Rakuten'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 Rakuten's products.
- According to the VRIO Analysis of Rakuten, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Rakuten. These patents also provide Rakuten with licensing revenue when it licenses these patents out to other manufacturers.
- The Rakuten VRIO Analysis shows that Rakuten’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Rakuten. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Rakuten, 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 Rakuten VRIO Analysis shows that the research and development at Rakuten 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 Rakuten. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Rakuten are found to be rare according to the VRIO Analysis of Rakuten. 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 Rakuten 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 Rakuten and inhibit competitive advantage. This means that the local food products result in competitive parity for Rakuten. As this resource is valuable, Rakuten can still make use of this resource.
- The employees of Rakuten are a rare resource as identified by the VRIO Analysis of Rakuten. 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 Rakuten are a rare resource as identified by the Rakuten VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Rakuten to use them without interference from the competition.
- The distribution network of Rakuten is a rare resource as identified by the VRIO Analysis of Rakuten. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Rakuten. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Rakuten are costly to imitate as identified by the Rakuten 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 Rakuten. 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 Rakuten provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Rakuten are also not costly to imitate as identified by the Rakuten VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Rakuten by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Rakuten a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Rakuten are very difficult to imitate as identified by the VRIO Analysis of Rakuten. 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 Rakuten is also very costly to imitate by competition as identified by the Rakuten VRIO Analysis. This has been developed over the years gradually by Rakuten. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Rakuten are organised to capture value as identified by the VRIO Analysis of Rakuten. 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 Rakuten.
- The Patents of Rakuten are not well organised as identified by the Rakuten 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 Rakuten starts selling patented products before the patents expire.
- The distribution network of Rakuten is organised as identified by the VRIO Analysis of Rakuten. Rakuten 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 Rakuten.
From the VRIO Analysis of Rakuten, 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 Rakuten 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.
Qihan Huang
5.0
Being an inactive student, I often need someone who can handle all my assignments and this is the service that associated me with the experts that can complete the paper in no time. Thank you so much!
Yang Shi
5.0
I adore the way how this service extended the special offer of discounts for me. Excellent service!
Helix Elias
5.0
Kudos to writer and service! My answers to all problems of college papers are here. This service is just like a pain-killer for me.
Samuel Alex
5.0
The writer was indeed a professional who was always ready to help me. Prices are great and I'll use this company. Thanks!
Next Articles
- Allianz (A1): An Insurer Acquiring A Bank? Vrio Analysis
- First Commonwealth Financial Corp. Vrio Analysis
- Allianz (C): An Interview With Dr. Holger Hatje Vrio Analysis
- Zopa.com: From A Hot Idea To An Established Market Player? Vrio Analysis
- Zopa: The Power Of Peer To Peer Lending Vrio Analysis
- CIBC Barclays: Should Their Caribbean Operations Be Merged? Vrio Analysis
- Micro Insurance Agency: Helping The Poor Manage Risk Vrio Analysis
- Retail Financial Services In 1998: Charles Schwab Vrio Analysis
- Edward Jones Vrio Analysis
- Capital One Financial Corp.: Setting And Shaping Strategy Vrio Analysis
Previous Articles
- KPMG Forensic: Money Laundering At Agnes Insurance Vrio Analysis
- AEROSPACE INVESTMENT: BALANCING VENTURE & RELATIONSHIP CAPITAL Confidential Instructions For The Founder Vrio Analysis
- Atlantis Biovent Negotiation: Confidential Instructions For Atlantis Vrio Analysis
- Charles Schwab: A Category Of One Vrio Analysis
- Banco Do Brasil: From Brazil To The World? Vrio Analysis
- CIBC Corporate And Investment Banking (C) 1997 99 Vrio Analysis
- Silver Lake Vrio Analysis
- Darwinians At The Gate: Sustainability, Innovation And Growth At DSM Vrio Analysis
- Toro Co. S'no Risk Program Vrio Analysis
- Morgan Stanley Japan 2002 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!