VRIO Analysis of Buchanan Renewables Bringing Power to Liberia

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Buchanan Renewables Bringing Power to Liberia are organised to capture value as identified by the VRIO Analysis of Buchanan Renewables Bringing Power to Liberia. 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 Buchanan Renewables Bringing Power to Liberia.
• The Patents of Buchanan Renewables Bringing Power to Liberia are not well organised as identified by the Buchanan Renewables Bringing Power to Liberia 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 Buchanan Renewables Bringing Power to Liberia starts selling patented products before the patents expire.
• The distribution network of Buchanan Renewables Bringing Power to Liberia is organised as identified by the VRIO Analysis of Buchanan Renewables Bringing Power to Liberia. Buchanan Renewables Bringing Power to Liberia 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 Buchanan Renewables Bringing Power to Liberia.

From the VRIO Analysis of Buchanan Renewables Bringing Power to Liberia, 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 Buchanan Renewables Bringing Power to Liberia is a competitive disadvantage. Research and Development is also a competitive disadvantage.