VRIO Analysis of CreditEase Providing Credit and Financial Services for China s Underclass

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of CreditEase Providing Credit and Financial Services for China s Underclass are organised to capture value as identified by the VRIO Analysis of CreditEase Providing Credit and Financial Services for China s Underclass. 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 CreditEase Providing Credit and Financial Services for China s Underclass.
• The Patents of CreditEase Providing Credit and Financial Services for China s Underclass are not well organised as identified by the CreditEase Providing Credit and Financial Services for China s Underclass 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 CreditEase Providing Credit and Financial Services for China s Underclass starts selling patented products before the patents expire.
• The distribution network of CreditEase Providing Credit and Financial Services for China s Underclass is organised as identified by the VRIO Analysis of CreditEase Providing Credit and Financial Services for China s Underclass. CreditEase Providing Credit and Financial Services for China s Underclass 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 CreditEase Providing Credit and Financial Services for China s Underclass.

From the VRIO Analysis of CreditEase Providing Credit and Financial Services for China s Underclass, 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 CreditEase Providing Credit and Financial Services for China s Underclass is a competitive disadvantage. Research and Development is also a competitive disadvantage.