VRIO Analysis of NESCAF Classic 70th Anniversary Tin A

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of NESCAF Classic 70th Anniversary Tin A will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A VRIO Analysis shows that the financial resources of NESCAF Classic 70th Anniversary Tin A are highly valuable as these help in investing into external opportunities that arise. These also help NESCAF Classic 70th Anniversary Tin A in combating external threats.
• According to the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A, 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 NESCAF Classic 70th Anniversary Tin A VRIO Analysis shows that NESCAF Classic 70th Anniversary Tin A'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 NESCAF Classic 70th Anniversary Tin A's products.
• According to the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for NESCAF Classic 70th Anniversary Tin A. These patents also provide NESCAF Classic 70th Anniversary Tin A with licensing revenue when it licenses these patents out to other manufacturers.
• The NESCAF Classic 70th Anniversary Tin A VRIO Analysis shows that NESCAF Classic 70th Anniversary Tin A’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for NESCAF Classic 70th Anniversary Tin A. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A, 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 NESCAF Classic 70th Anniversary Tin A VRIO Analysis shows that the research and development at NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

• The financial resources of NESCAF Classic 70th Anniversary Tin A are found to be rare according to the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. 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 NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A and inhibit competitive advantage. This means that the local food products result in competitive parity for NESCAF Classic 70th Anniversary Tin A. As this resource is valuable, NESCAF Classic 70th Anniversary Tin A can still make use of this resource.
• The employees of NESCAF Classic 70th Anniversary Tin A are a rare resource as identified by the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. 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 NESCAF Classic 70th Anniversary Tin A are a rare resource as identified by the NESCAF Classic 70th Anniversary Tin A VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows NESCAF Classic 70th Anniversary Tin A to use them without interference from the competition.
• The distribution network of NESCAF Classic 70th Anniversary Tin A is a rare resource as identified by the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of NESCAF Classic 70th Anniversary Tin A. These are also possessed by very few firms in the industry.

Imitable

• The financial resources of NESCAF Classic 70th Anniversary Tin A are costly to imitate as identified by the NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A. 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 NESCAF Classic 70th Anniversary Tin A provide it with a temporary competitive advantage that competitors can too acquire in the long run.
• The employees of NESCAF Classic 70th Anniversary Tin A are also not costly to imitate as identified by the NESCAF Classic 70th Anniversary Tin A VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from NESCAF Classic 70th Anniversary Tin A by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of NESCAF Classic 70th Anniversary Tin A a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
• The patents of NESCAF Classic 70th Anniversary Tin A are very difficult to imitate as identified by the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. 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 NESCAF Classic 70th Anniversary Tin A is also very costly to imitate by competition as identified by the NESCAF Classic 70th Anniversary Tin A VRIO Analysis. This has been developed over the years gradually by NESCAF Classic 70th Anniversary Tin A. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.

Organisation

• The financial resources of NESCAF Classic 70th Anniversary Tin A are organised to capture value as identified by the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. 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 NESCAF Classic 70th Anniversary Tin A.
• The Patents of NESCAF Classic 70th Anniversary Tin A are not well organised as identified by the NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A starts selling patented products before the patents expire.
• The distribution network of NESCAF Classic 70th Anniversary Tin A is organised as identified by the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A. NESCAF Classic 70th Anniversary Tin A 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 NESCAF Classic 70th Anniversary Tin A.

From the VRIO Analysis of NESCAF Classic 70th Anniversary Tin A, 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 NESCAF Classic 70th Anniversary Tin A is a competitive disadvantage. Research and Development is also a competitive disadvantage.