VRIO Analysis of AJE Group Pursuing Lost Growth

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of AJE Group Pursuing Lost Growth are organised to capture value as identified by the VRIO Analysis of AJE Group Pursuing Lost Growth. 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 AJE Group Pursuing Lost Growth.
• The Patents of AJE Group Pursuing Lost Growth are not well organised as identified by the AJE Group Pursuing Lost Growth 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 AJE Group Pursuing Lost Growth starts selling patented products before the patents expire.
• The distribution network of AJE Group Pursuing Lost Growth is organised as identified by the VRIO Analysis of AJE Group Pursuing Lost Growth. AJE Group Pursuing Lost Growth 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 AJE Group Pursuing Lost Growth.

From the VRIO Analysis of AJE Group Pursuing Lost Growth, 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 AJE Group Pursuing Lost Growth is a competitive disadvantage. Research and Development is also a competitive disadvantage.