VRIO Analysis of Orascom Telecom Risks of Internationalization

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

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

From the VRIO Analysis of Orascom Telecom Risks of Internationalization, 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 Orascom Telecom Risks of Internationalization is a competitive disadvantage. Research and Development is also a competitive disadvantage.