VRIO Analysis of Corporacion de Desarrollo Social del Sector Rural Codesser

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Corporacion de Desarrollo Social del Sector Rural Codesser are organised to capture value as identified by the VRIO Analysis of Corporacion de Desarrollo Social del Sector Rural Codesser. 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 Corporacion de Desarrollo Social del Sector Rural Codesser.
• The Patents of Corporacion de Desarrollo Social del Sector Rural Codesser are not well organised as identified by the Corporacion de Desarrollo Social del Sector Rural Codesser 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 Corporacion de Desarrollo Social del Sector Rural Codesser starts selling patented products before the patents expire.
• The distribution network of Corporacion de Desarrollo Social del Sector Rural Codesser is organised as identified by the VRIO Analysis of Corporacion de Desarrollo Social del Sector Rural Codesser. Corporacion de Desarrollo Social del Sector Rural Codesser 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 Corporacion de Desarrollo Social del Sector Rural Codesser.

From the VRIO Analysis of Corporacion de Desarrollo Social del Sector Rural Codesser, 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 Corporacion de Desarrollo Social del Sector Rural Codesser is a competitive disadvantage. Research and Development is also a competitive disadvantage.