VRIO Analysis of A PERFORMANCE PROBLEM

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

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

From the VRIO Analysis of A PERFORMANCE PROBLEM, 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 A PERFORMANCE PROBLEM is a competitive disadvantage. Research and Development is also a competitive disadvantage.