VRIO Analysis of AUDIT COMMITTEES CAN T ADD

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of AUDIT COMMITTEES CAN T ADD will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The AUDIT COMMITTEES CAN T ADD 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 AUDIT COMMITTEES CAN T ADD VRIO Analysis shows that the financial resources of AUDIT COMMITTEES CAN T ADD are highly valuable as these help in investing into external opportunities that arise. These also help AUDIT COMMITTEES CAN T ADD in combating external threats.
• According to the VRIO Analysis of AUDIT COMMITTEES CAN T ADD, 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 AUDIT COMMITTEES CAN T ADD VRIO Analysis shows that AUDIT COMMITTEES CAN T ADD'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 AUDIT COMMITTEES CAN T ADD's products.
• According to the VRIO Analysis of AUDIT COMMITTEES CAN T ADD, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for AUDIT COMMITTEES CAN T ADD. These patents also provide AUDIT COMMITTEES CAN T ADD with licensing revenue when it licenses these patents out to other manufacturers.
• The AUDIT COMMITTEES CAN T ADD VRIO Analysis shows that AUDIT COMMITTEES CAN T ADD’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for AUDIT COMMITTEES CAN T ADD. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of AUDIT COMMITTEES CAN T ADD, 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 AUDIT COMMITTEES CAN T ADD VRIO Analysis shows that the research and development at AUDIT COMMITTEES CAN T ADD 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 AUDIT COMMITTEES CAN T ADD. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

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

Imitable

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

Organisation

• The financial resources of AUDIT COMMITTEES CAN T ADD are organised to capture value as identified by the VRIO Analysis of AUDIT COMMITTEES CAN T ADD. 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 AUDIT COMMITTEES CAN T ADD.
• The Patents of AUDIT COMMITTEES CAN T ADD are not well organised as identified by the AUDIT COMMITTEES CAN T ADD 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 AUDIT COMMITTEES CAN T ADD starts selling patented products before the patents expire.
• The distribution network of AUDIT COMMITTEES CAN T ADD is organised as identified by the VRIO Analysis of AUDIT COMMITTEES CAN T ADD. AUDIT COMMITTEES CAN T ADD 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 AUDIT COMMITTEES CAN T ADD.

From the VRIO Analysis of AUDIT COMMITTEES CAN T ADD, 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 AUDIT COMMITTEES CAN T ADD is a competitive disadvantage. Research and Development is also a competitive disadvantage.