VRIO Analysis of Dilli Haat Reviving Lost Glory

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Dilli Haat Reviving Lost Glory are organised to capture value as identified by the VRIO Analysis of Dilli Haat Reviving Lost Glory. 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 Dilli Haat Reviving Lost Glory.
• The Patents of Dilli Haat Reviving Lost Glory are not well organised as identified by the Dilli Haat Reviving Lost Glory 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 Dilli Haat Reviving Lost Glory starts selling patented products before the patents expire.
• The distribution network of Dilli Haat Reviving Lost Glory is organised as identified by the VRIO Analysis of Dilli Haat Reviving Lost Glory. Dilli Haat Reviving Lost Glory 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 Dilli Haat Reviving Lost Glory.

From the VRIO Analysis of Dilli Haat Reviving Lost Glory, 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 Dilli Haat Reviving Lost Glory is a competitive disadvantage. Research and Development is also a competitive disadvantage.