VRIO Analysis of Sushma Industries The Gordian Knot of Compensation Design

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Sushma Industries The Gordian Knot of Compensation Design are organised to capture value as identified by the VRIO Analysis of Sushma Industries The Gordian Knot of Compensation Design. 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 Sushma Industries The Gordian Knot of Compensation Design.
• The Patents of Sushma Industries The Gordian Knot of Compensation Design are not well organised as identified by the Sushma Industries The Gordian Knot of Compensation Design 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 Sushma Industries The Gordian Knot of Compensation Design starts selling patented products before the patents expire.
• The distribution network of Sushma Industries The Gordian Knot of Compensation Design is organised as identified by the VRIO Analysis of Sushma Industries The Gordian Knot of Compensation Design. Sushma Industries The Gordian Knot of Compensation Design 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 Sushma Industries The Gordian Knot of Compensation Design.

From the VRIO Analysis of Sushma Industries The Gordian Knot of Compensation Design, 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 Sushma Industries The Gordian Knot of Compensation Design is a competitive disadvantage. Research and Development is also a competitive disadvantage.