VRIO Analysis of Bonobos Inc Building a Technical Team

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Bonobos Inc Building a Technical Team are organised to capture value as identified by the VRIO Analysis of Bonobos Inc Building a Technical Team. 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 Bonobos Inc Building a Technical Team.
• The Patents of Bonobos Inc Building a Technical Team are not well organised as identified by the Bonobos Inc Building a Technical Team 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 Bonobos Inc Building a Technical Team starts selling patented products before the patents expire.
• The distribution network of Bonobos Inc Building a Technical Team is organised as identified by the VRIO Analysis of Bonobos Inc Building a Technical Team. Bonobos Inc Building a Technical Team 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 Bonobos Inc Building a Technical Team.

From the VRIO Analysis of Bonobos Inc Building a Technical Team, 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 Bonobos Inc Building a Technical Team is a competitive disadvantage. Research and Development is also a competitive disadvantage.