VRIO Analysis of Innovation ENEL From Monopoly Power to Open Power

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Innovation ENEL From Monopoly Power to Open Power are organised to capture value as identified by the VRIO Analysis of Innovation ENEL From Monopoly Power to Open Power. 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 Innovation ENEL From Monopoly Power to Open Power.
• The Patents of Innovation ENEL From Monopoly Power to Open Power are not well organised as identified by the Innovation ENEL From Monopoly Power to Open Power 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 Innovation ENEL From Monopoly Power to Open Power starts selling patented products before the patents expire.
• The distribution network of Innovation ENEL From Monopoly Power to Open Power is organised as identified by the VRIO Analysis of Innovation ENEL From Monopoly Power to Open Power. Innovation ENEL From Monopoly Power to Open Power 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 Innovation ENEL From Monopoly Power to Open Power.

From the VRIO Analysis of Innovation ENEL From Monopoly Power to Open Power, 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 Innovation ENEL From Monopoly Power to Open Power is a competitive disadvantage. Research and Development is also a competitive disadvantage.