- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
VRIO Analysis of BAT Central America
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of BAT Central America will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The BAT Central America 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 BAT Central America VRIO Analysis shows that the financial resources of BAT Central America are highly valuable as these help in investing into external opportunities that arise. These also help BAT Central America in combating external threats.
- According to the VRIO Analysis of BAT Central America, 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 BAT Central America VRIO Analysis shows that BAT Central America'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 BAT Central America's products.
- According to the VRIO Analysis of BAT Central America, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for BAT Central America. These patents also provide BAT Central America with licensing revenue when it licenses these patents out to other manufacturers.
- The BAT Central America VRIO Analysis shows that BAT Central America’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for BAT Central America. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of BAT Central America, 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 BAT Central America VRIO Analysis shows that the research and development at BAT Central America 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 BAT Central America. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of BAT Central America are found to be rare according to the VRIO Analysis of BAT Central America. 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 BAT Central America 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 BAT Central America and inhibit competitive advantage. This means that the local food products result in competitive parity for BAT Central America. As this resource is valuable, BAT Central America can still make use of this resource.
- The employees of BAT Central America are a rare resource as identified by the VRIO Analysis of BAT Central America. 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 BAT Central America are a rare resource as identified by the BAT Central America VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows BAT Central America to use them without interference from the competition.
- The distribution network of BAT Central America is a rare resource as identified by the VRIO Analysis of BAT Central America. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of BAT Central America. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of BAT Central America are costly to imitate as identified by the BAT Central America 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 BAT Central America. 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 BAT Central America provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of BAT Central America are also not costly to imitate as identified by the BAT Central America VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from BAT Central America by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of BAT Central America a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of BAT Central America are very difficult to imitate as identified by the VRIO Analysis of BAT Central America. 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 BAT Central America is also very costly to imitate by competition as identified by the BAT Central America VRIO Analysis. This has been developed over the years gradually by BAT Central America. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of BAT Central America are organised to capture value as identified by the VRIO Analysis of BAT Central America. 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 BAT Central America.
- The Patents of BAT Central America are not well organised as identified by the BAT Central America 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 BAT Central America starts selling patented products before the patents expire.
- The distribution network of BAT Central America is organised as identified by the VRIO Analysis of BAT Central America. BAT Central America 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 BAT Central America.
From the VRIO Analysis of BAT Central America, 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 BAT Central America is a competitive disadvantage. Research and Development is also a competitive disadvantage.
Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here.
Miller Johnson
5.0
Which features I most love of this service is its confidentiality and the errorless conversation with the writer. Thanks!
Dzsenifer Pazman
5.0
My paper was on Economics and this service endowed me with no less than A grade. Thanks a lot!
Sofia Bekko
5.0
With the grace of fantastic points of the paper, the professor got glad and gave me such nice marks.
Emma Kayle
4.0
I am always satisfied with the assignment and get nothing but a positive experience from this writing service. Grateful!
Next Articles
- Bayer AG: Children's Aspirin Vrio Analysis
- CMM Compania Minera Montemorelos, SA Vrio Analysis
- Enron And The Dabhol Power Company Vrio Analysis
- ERP In Tosco (A) Vrio Analysis
- Nestlé Continuous Excellence (C): Operations And Beyond Vrio Analysis
- Erp In Tosco (A) & (B) Vrio Analysis
- Competitive Advantage Through Channel Management Vrio Analysis
- D'Aquino Quimica Do Brazil SA Vrio Analysis
- Enron's Demise: Were There Warning Signs? Vrio Analysis
- Innovation And Customer Service At Grupo Supermercados Wong: A Peruvian Success Story Vrio Analysis
Previous Articles
- Tesco, Plc: 'From Mouse To House' In Online Grocery Retailing Vrio Analysis
- SF Corporation And Trade Finance Securitization Vrio Analysis
- Nick Jensen In Myland Vrio Analysis
- Korean Plastics Company: Factoring Export Receivables Vrio Analysis
- Japan Glass Company: Forfaiting Export Receivables Vrio Analysis
- International Pizza House In Brazil Vrio Analysis
- Hobart Corporation Vrio Analysis
- Heritage Manufacturing Company Vrio Analysis
- General Motors And Avtovaz Vrio Analysis
- Financial Analysis: Identifying The Industry Vrio Analysis
Be a great writer or hire a greater one!
Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.
Our Guarantees
Interesting Fact
Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!