VRIO Analysis of Environmental Quality International in SIWA

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Environmental Quality International in SIWA are organised to capture value as identified by the VRIO Analysis of Environmental Quality International in SIWA. 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 Environmental Quality International in SIWA.
• The Patents of Environmental Quality International in SIWA are not well organised as identified by the Environmental Quality International in SIWA 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 Environmental Quality International in SIWA starts selling patented products before the patents expire.
• The distribution network of Environmental Quality International in SIWA is organised as identified by the VRIO Analysis of Environmental Quality International in SIWA. Environmental Quality International in SIWA 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 Environmental Quality International in SIWA.

From the VRIO Analysis of Environmental Quality International in SIWA, 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 Environmental Quality International in SIWA is a competitive disadvantage. Research and Development is also a competitive disadvantage.