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