VRIO Analysis of DHL Global Forwarding Consolidation Program

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of DHL Global Forwarding Consolidation Program are organised to capture value as identified by the VRIO Analysis of DHL Global Forwarding Consolidation Program. 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 DHL Global Forwarding Consolidation Program.
• The Patents of DHL Global Forwarding Consolidation Program are not well organised as identified by the DHL Global Forwarding Consolidation Program 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 DHL Global Forwarding Consolidation Program starts selling patented products before the patents expire.
• The distribution network of DHL Global Forwarding Consolidation Program is organised as identified by the VRIO Analysis of DHL Global Forwarding Consolidation Program. DHL Global Forwarding Consolidation Program 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 DHL Global Forwarding Consolidation Program.

From the VRIO Analysis of DHL Global Forwarding Consolidation Program, 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 DHL Global Forwarding Consolidation Program is a competitive disadvantage. Research and Development is also a competitive disadvantage.