VRIO Analysis of Cementing the Bottom of the Pyramid A New Direction at CEMEX

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Cementing the Bottom of the Pyramid A New Direction at CEMEX are organised to capture value as identified by the VRIO Analysis of Cementing the Bottom of the Pyramid A New Direction at CEMEX. 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 Cementing the Bottom of the Pyramid A New Direction at CEMEX.
• The Patents of Cementing the Bottom of the Pyramid A New Direction at CEMEX are not well organised as identified by the Cementing the Bottom of the Pyramid A New Direction at CEMEX 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 Cementing the Bottom of the Pyramid A New Direction at CEMEX starts selling patented products before the patents expire.
• The distribution network of Cementing the Bottom of the Pyramid A New Direction at CEMEX is organised as identified by the VRIO Analysis of Cementing the Bottom of the Pyramid A New Direction at CEMEX. Cementing the Bottom of the Pyramid A New Direction at CEMEX 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 Cementing the Bottom of the Pyramid A New Direction at CEMEX.

From the VRIO Analysis of Cementing the Bottom of the Pyramid A New Direction at CEMEX, 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 Cementing the Bottom of the Pyramid A New Direction at CEMEX is a competitive disadvantage. Research and Development is also a competitive disadvantage.