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VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis shows that the financial resources of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are highly valuable as these help in investing into external opportunities that arise. These also help FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN in combating external threats.
- According to the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN, 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis shows that FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN'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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN's products.
- According to the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. These patents also provide FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN with licensing revenue when it licenses these patents out to other manufacturers.
- The FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis shows that FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN, 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis shows that the research and development at FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are found to be rare according to the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN and inhibit competitive advantage. This means that the local food products result in competitive parity for FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. As this resource is valuable, FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN can still make use of this resource.
- The employees of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are a rare resource as identified by the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are a rare resource as identified by the FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN to use them without interference from the competition.
- The distribution network of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN is a rare resource as identified by the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are costly to imitate as identified by the FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are also not costly to imitate as identified by the FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are very difficult to imitate as identified by the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN is also very costly to imitate by competition as identified by the FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN VRIO Analysis. This has been developed over the years gradually by FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are organised to capture value as identified by the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN.
- The Patents of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN are not well organised as identified by the FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN starts selling patented products before the patents expire.
- The distribution network of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN is organised as identified by the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN. FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN.
From the VRIO Analysis of FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN, 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 FOXCONN TECHNOLOGY GROUP ACQUIRING SHARP TO MOVE UP THE VALUE CHAIN is a competitive disadvantage. Research and Development is also a competitive disadvantage.
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