VRIO Analysis of Whole Foods Market The Deutsche Bank Report

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Whole Foods Market The Deutsche Bank Report are organised to capture value as identified by the VRIO Analysis of Whole Foods Market The Deutsche Bank Report. 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 Whole Foods Market The Deutsche Bank Report.
• The Patents of Whole Foods Market The Deutsche Bank Report are not well organised as identified by the Whole Foods Market The Deutsche Bank Report 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 Whole Foods Market The Deutsche Bank Report starts selling patented products before the patents expire.
• The distribution network of Whole Foods Market The Deutsche Bank Report is organised as identified by the VRIO Analysis of Whole Foods Market The Deutsche Bank Report. Whole Foods Market The Deutsche Bank Report 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 Whole Foods Market The Deutsche Bank Report.

From the VRIO Analysis of Whole Foods Market The Deutsche Bank Report, 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 Whole Foods Market The Deutsche Bank Report is a competitive disadvantage. Research and Development is also a competitive disadvantage.