VRIO Analysis of Beau Ties Ltd of Vermont

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Beau Ties Ltd of Vermont are organised to capture value as identified by the VRIO Analysis of Beau Ties Ltd of Vermont. 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 Beau Ties Ltd of Vermont.
• The Patents of Beau Ties Ltd of Vermont are not well organised as identified by the Beau Ties Ltd of Vermont 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 Beau Ties Ltd of Vermont starts selling patented products before the patents expire.
• The distribution network of Beau Ties Ltd of Vermont is organised as identified by the VRIO Analysis of Beau Ties Ltd of Vermont. Beau Ties Ltd of Vermont 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 Beau Ties Ltd of Vermont.

From the VRIO Analysis of Beau Ties Ltd of Vermont, 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 Beau Ties Ltd of Vermont is a competitive disadvantage. Research and Development is also a competitive disadvantage.