VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla

Posted by Zachary Edwards on Mar-22-2018

The VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla VRIO Analysis shows that the financial resources of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla are highly valuable as these help in investing into external opportunities that arise. These also help Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla in combating external threats.
• According to the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla, 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla VRIO Analysis shows that Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla'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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla's products.
• According to the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla. These patents also provide Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla with licensing revenue when it licenses these patents out to other manufacturers.
• The Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla VRIO Analysis shows that Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla. It also ensures that promotion activities translate into sales as the products are easily available.
• According to the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla, 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla VRIO Analysis shows that the research and development at Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla. It is recommended that the research and development teams are improved, and costs are cut for these.

Rare

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

Imitable

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

Organisation

• The financial resources of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla are organised to capture value as identified by the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla. 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla.
• The Patents of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla are not well organised as identified by the Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla starts selling patented products before the patents expire.
• The distribution network of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla is organised as identified by the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla. Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla.

From the VRIO Analysis of Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla, 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 Tesla Motors Business Model Configuration Case Study Update from Tesla Motors to Tesla is a competitive disadvantage. Research and Development is also a competitive disadvantage.