- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
VRIO Analysis of Nike A
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Nike A will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Nike 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 Nike A VRIO Analysis shows that the financial resources of Nike A are highly valuable as these help in investing into external opportunities that arise. These also help Nike A in combating external threats.
- According to the VRIO Analysis of Nike 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 Nike A VRIO Analysis shows that Nike 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 Nike A's products.
- According to the VRIO Analysis of Nike 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 Nike A. These patents also provide Nike A with licensing revenue when it licenses these patents out to other manufacturers.
- The Nike A VRIO Analysis shows that Nike A’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Nike A. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Nike 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 Nike A VRIO Analysis shows that the research and development at Nike 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 Nike A. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Nike A are found to be rare according to the VRIO Analysis of Nike 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 Nike 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 Nike A and inhibit competitive advantage. This means that the local food products result in competitive parity for Nike A. As this resource is valuable, Nike A can still make use of this resource.
- The employees of Nike A are a rare resource as identified by the VRIO Analysis of Nike 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 Nike A are a rare resource as identified by the Nike A VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Nike A to use them without interference from the competition.
- The distribution network of Nike A is a rare resource as identified by the VRIO Analysis of Nike A. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Nike A. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Nike A are costly to imitate as identified by the Nike 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 Nike 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 Nike A provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Nike A are also not costly to imitate as identified by the Nike A VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Nike A by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Nike A a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Nike A are very difficult to imitate as identified by the VRIO Analysis of Nike 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 Nike A is also very costly to imitate by competition as identified by the Nike A VRIO Analysis. This has been developed over the years gradually by Nike A. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Nike A are organised to capture value as identified by the VRIO Analysis of Nike 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 Nike A.
- The Patents of Nike A are not well organised as identified by the Nike 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 Nike A starts selling patented products before the patents expire.
- The distribution network of Nike A is organised as identified by the VRIO Analysis of Nike A. Nike 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 Nike A.
From the VRIO Analysis of Nike 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 Nike A is a competitive disadvantage. Research and Development is also a competitive disadvantage.
Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here.
Cooper Arthur
5.0
I’m pleased with communication program. I conveyed everything about the Term Paper and got a fine paper. A great deal of thanks!
Clara Jasper
5.0
Better-trained writers are available here. A client-friendly private policy. Blessed to have this company.
Zheng Huang
5.0
I submitted the assignment earlier because the writer delivered the document ahead from the deadline. Wow! A perfect paper!
Natasa Teca
5.0
I suggested this service to my friends and got benefits from the reference-system. Thank you so much!
Next Articles
- BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U Vrio Analysis
- Faith And Work: Hobby Lobby And AutoZone Vrio Analysis
- Jeanne Lewis At Staples, Inc. (C) Vrio Analysis
- Pulling The Goalie In Hockey Vrio Analysis
- Carolina Lunker Sauce Vrio Analysis
- Sony Ericsson WTA Tour (B) Vrio Analysis
- The USGA And The State Of Golf In The United States Vrio Analysis
- Coach McKeever: Unorthodox Leadership Lessons From The Pool Vrio Analysis
- Cheating And NASCAR: Who's At The Wheel? Vrio Analysis
- Coach Clark (A): It's Not About Winning. It's About Getting Better Vrio Analysis
Previous Articles
- Asda (A1), Spanish Version Vrio Analysis
- Nike In Transition (A): The Ascendancy Of Bob Woodell, Chinese Version Vrio Analysis
- Weston Nurseries, Inc. (A) Vrio Analysis
- Ann Hopkins (B) Vrio Analysis
- Liz Claiborne And The New Working Woman Vrio Analysis
- Marimekko Vrio Analysis
- Haier Group (C) Vrio Analysis
- Lululemon Athletica: The Wholesaling Decision Vrio Analysis
- Nike In China Vrio Analysis
- Levi Strauss & Co.: Global Sourcing (B) Vrio Analysis
Be a great writer or hire a greater one!
Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.
Our Guarantees
Interesting Fact
Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!