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