VRIO Analysis of Designing a Compliance Program at AB InBev

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Designing a Compliance Program at AB InBev are organised to capture value as identified by the VRIO Analysis of Designing a Compliance Program at AB InBev. 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 Designing a Compliance Program at AB InBev.
• The Patents of Designing a Compliance Program at AB InBev are not well organised as identified by the Designing a Compliance Program at AB InBev 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 Designing a Compliance Program at AB InBev starts selling patented products before the patents expire.
• The distribution network of Designing a Compliance Program at AB InBev is organised as identified by the VRIO Analysis of Designing a Compliance Program at AB InBev. Designing a Compliance Program at AB InBev 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 Designing a Compliance Program at AB InBev.

From the VRIO Analysis of Designing a Compliance Program at AB InBev, 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 Designing a Compliance Program at AB InBev is a competitive disadvantage. Research and Development is also a competitive disadvantage.