VRIO Analysis of Hilton Revives Its Resorts B

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Hilton Revives Its Resorts B are organised to capture value as identified by the VRIO Analysis of Hilton Revives Its Resorts B. 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 Hilton Revives Its Resorts B.
• The Patents of Hilton Revives Its Resorts B are not well organised as identified by the Hilton Revives Its Resorts B 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 Hilton Revives Its Resorts B starts selling patented products before the patents expire.
• The distribution network of Hilton Revives Its Resorts B is organised as identified by the VRIO Analysis of Hilton Revives Its Resorts B. Hilton Revives Its Resorts B 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 Hilton Revives Its Resorts B.

From the VRIO Analysis of Hilton Revives Its Resorts B, 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 Hilton Revives Its Resorts B is a competitive disadvantage. Research and Development is also a competitive disadvantage.