VRIO Analysis of Historical Society of Pennsylvania

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

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

From the VRIO Analysis of Historical Society of Pennsylvania, 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 Historical Society of Pennsylvania is a competitive disadvantage. Research and Development is also a competitive disadvantage.