VRIO Analysis of Wine in China The Wild West of the Far East

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Wine in China The Wild West of the Far East are organised to capture value as identified by the VRIO Analysis of Wine in China The Wild West of the Far East. 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 Wine in China The Wild West of the Far East.
• The Patents of Wine in China The Wild West of the Far East are not well organised as identified by the Wine in China The Wild West of the Far East 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 Wine in China The Wild West of the Far East starts selling patented products before the patents expire.
• The distribution network of Wine in China The Wild West of the Far East is organised as identified by the VRIO Analysis of Wine in China The Wild West of the Far East. Wine in China The Wild West of the Far East 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 Wine in China The Wild West of the Far East.

From the VRIO Analysis of Wine in China The Wild West of the Far East, 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 Wine in China The Wild West of the Far East is a competitive disadvantage. Research and Development is also a competitive disadvantage.