VRIO Analysis of Eden Project A Creating a Better Legacy

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Eden Project A Creating a Better Legacy are organised to capture value as identified by the VRIO Analysis of Eden Project A Creating a Better Legacy. 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 Eden Project A Creating a Better Legacy.
• The Patents of Eden Project A Creating a Better Legacy are not well organised as identified by the Eden Project A Creating a Better Legacy 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 Eden Project A Creating a Better Legacy starts selling patented products before the patents expire.
• The distribution network of Eden Project A Creating a Better Legacy is organised as identified by the VRIO Analysis of Eden Project A Creating a Better Legacy. Eden Project A Creating a Better Legacy 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 Eden Project A Creating a Better Legacy.

From the VRIO Analysis of Eden Project A Creating a Better Legacy, 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 Eden Project A Creating a Better Legacy is a competitive disadvantage. Research and Development is also a competitive disadvantage.