VRIO Analysis of Private Equity Transforming TDC

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Private Equity Transforming TDC are organised to capture value as identified by the VRIO Analysis of Private Equity Transforming TDC. 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 Private Equity Transforming TDC.
• The Patents of Private Equity Transforming TDC are not well organised as identified by the Private Equity Transforming TDC 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 Private Equity Transforming TDC starts selling patented products before the patents expire.
• The distribution network of Private Equity Transforming TDC is organised as identified by the VRIO Analysis of Private Equity Transforming TDC. Private Equity Transforming TDC 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 Private Equity Transforming TDC.

From the VRIO Analysis of Private Equity Transforming TDC, 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 Private Equity Transforming TDC is a competitive disadvantage. Research and Development is also a competitive disadvantage.