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VRIO Analysis of CompUSA The Computer Superstore
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of CompUSA The Computer Superstore will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The CompUSA The Computer Superstore 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 CompUSA The Computer Superstore VRIO Analysis shows that the financial resources of CompUSA The Computer Superstore are highly valuable as these help in investing into external opportunities that arise. These also help CompUSA The Computer Superstore in combating external threats.
- According to the VRIO Analysis of CompUSA The Computer Superstore, 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 CompUSA The Computer Superstore VRIO Analysis shows that CompUSA The Computer Superstore'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 CompUSA The Computer Superstore's products.
- According to the VRIO Analysis of CompUSA The Computer Superstore, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for CompUSA The Computer Superstore. These patents also provide CompUSA The Computer Superstore with licensing revenue when it licenses these patents out to other manufacturers.
- The CompUSA The Computer Superstore VRIO Analysis shows that CompUSA The Computer Superstore’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for CompUSA The Computer Superstore. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of CompUSA The Computer Superstore, 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 CompUSA The Computer Superstore VRIO Analysis shows that the research and development at CompUSA The Computer Superstore 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 CompUSA The Computer Superstore. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of CompUSA The Computer Superstore are found to be rare according to the VRIO Analysis of CompUSA The Computer Superstore. 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 CompUSA The Computer Superstore 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 CompUSA The Computer Superstore and inhibit competitive advantage. This means that the local food products result in competitive parity for CompUSA The Computer Superstore. As this resource is valuable, CompUSA The Computer Superstore can still make use of this resource.
- The employees of CompUSA The Computer Superstore are a rare resource as identified by the VRIO Analysis of CompUSA The Computer Superstore. 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 CompUSA The Computer Superstore are a rare resource as identified by the CompUSA The Computer Superstore VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows CompUSA The Computer Superstore to use them without interference from the competition.
- The distribution network of CompUSA The Computer Superstore is a rare resource as identified by the VRIO Analysis of CompUSA The Computer Superstore. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of CompUSA The Computer Superstore. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of CompUSA The Computer Superstore are costly to imitate as identified by the CompUSA The Computer Superstore 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 CompUSA The Computer Superstore. 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 CompUSA The Computer Superstore provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of CompUSA The Computer Superstore are also not costly to imitate as identified by the CompUSA The Computer Superstore VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from CompUSA The Computer Superstore by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of CompUSA The Computer Superstore a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of CompUSA The Computer Superstore are very difficult to imitate as identified by the VRIO Analysis of CompUSA The Computer Superstore. 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 CompUSA The Computer Superstore is also very costly to imitate by competition as identified by the CompUSA The Computer Superstore VRIO Analysis. This has been developed over the years gradually by CompUSA The Computer Superstore. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of CompUSA The Computer Superstore are organised to capture value as identified by the VRIO Analysis of CompUSA The Computer Superstore. 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 CompUSA The Computer Superstore.
- The Patents of CompUSA The Computer Superstore are not well organised as identified by the CompUSA The Computer Superstore 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 CompUSA The Computer Superstore starts selling patented products before the patents expire.
- The distribution network of CompUSA The Computer Superstore is organised as identified by the VRIO Analysis of CompUSA The Computer Superstore. CompUSA The Computer Superstore 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 CompUSA The Computer Superstore.
From the VRIO Analysis of CompUSA The Computer Superstore, 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 CompUSA The Computer Superstore is a competitive disadvantage. Research and Development is also a competitive disadvantage.
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