VRIO Analysis of Two Tough Calls A

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Two Tough Calls A are organised to capture value as identified by the VRIO Analysis of Two Tough Calls A. 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 Two Tough Calls A.
• The Patents of Two Tough Calls A are not well organised as identified by the Two Tough Calls A 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 Two Tough Calls A starts selling patented products before the patents expire.
• The distribution network of Two Tough Calls A is organised as identified by the VRIO Analysis of Two Tough Calls A. Two Tough Calls A 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 Two Tough Calls A.

From the VRIO Analysis of Two Tough Calls A, 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 Two Tough Calls A is a competitive disadvantage. Research and Development is also a competitive disadvantage.