VRIO Analysis of Health and the Art of Motorcycle Maintenance

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Health and the Art of Motorcycle Maintenance are organised to capture value as identified by the VRIO Analysis of Health and the Art of Motorcycle Maintenance. 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 Health and the Art of Motorcycle Maintenance.
• The Patents of Health and the Art of Motorcycle Maintenance are not well organised as identified by the Health and the Art of Motorcycle Maintenance 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 Health and the Art of Motorcycle Maintenance starts selling patented products before the patents expire.
• The distribution network of Health and the Art of Motorcycle Maintenance is organised as identified by the VRIO Analysis of Health and the Art of Motorcycle Maintenance. Health and the Art of Motorcycle Maintenance 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 Health and the Art of Motorcycle Maintenance.

From the VRIO Analysis of Health and the Art of Motorcycle Maintenance, 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 Health and the Art of Motorcycle Maintenance is a competitive disadvantage. Research and Development is also a competitive disadvantage.