VRIO Analysis of Holt Lunsford Commercial

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Holt Lunsford Commercial are organised to capture value as identified by the VRIO Analysis of Holt Lunsford Commercial. 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 Holt Lunsford Commercial.
• The Patents of Holt Lunsford Commercial are not well organised as identified by the Holt Lunsford Commercial 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 Holt Lunsford Commercial starts selling patented products before the patents expire.
• The distribution network of Holt Lunsford Commercial is organised as identified by the VRIO Analysis of Holt Lunsford Commercial. Holt Lunsford Commercial 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 Holt Lunsford Commercial.

From the VRIO Analysis of Holt Lunsford Commercial, 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 Holt Lunsford Commercial is a competitive disadvantage. Research and Development is also a competitive disadvantage.