VRIO Analysis of Private Management and Public Schools B

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of Private Management and Public Schools B will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Private Management and Public Schools 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 Private Management and Public Schools B VRIO Analysis shows that the financial resources of Private Management and Public Schools B are highly valuable as these help in investing into external opportunities that arise. These also help Private Management and Public Schools B in combating external threats.
• According to the VRIO Analysis of Private Management and Public Schools 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 Private Management and Public Schools B VRIO Analysis shows that Private Management and Public Schools 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 Private Management and Public Schools B's products.
• According to the VRIO Analysis of Private Management and Public Schools 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 Private Management and Public Schools B. These patents also provide Private Management and Public Schools B with licensing revenue when it licenses these patents out to other manufacturers.
• The Private Management and Public Schools B VRIO Analysis shows that Private Management and Public Schools B’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Private Management and Public Schools B. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of Private Management and Public Schools 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 Private Management and Public Schools B VRIO Analysis shows that the research and development at Private Management and Public Schools 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 Private Management and Public Schools B. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

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

Imitable

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

Organisation

• The financial resources of Private Management and Public Schools B are organised to capture value as identified by the VRIO Analysis of Private Management and Public Schools 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 Private Management and Public Schools B.
• The Patents of Private Management and Public Schools B are not well organised as identified by the Private Management and Public Schools 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 Private Management and Public Schools B starts selling patented products before the patents expire.
• The distribution network of Private Management and Public Schools B is organised as identified by the VRIO Analysis of Private Management and Public Schools B. Private Management and Public Schools 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 Private Management and Public Schools B.

From the VRIO Analysis of Private Management and Public Schools 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 Private Management and Public Schools B is a competitive disadvantage. Research and Development is also a competitive disadvantage.