VRIO Analysis of Hindustan Unilever Ltd Creating Shared Value in a VUCA World

Posted by Zachary Edwards on Mar-22-2018

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

Rare

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

Imitable

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

Organisation

• The financial resources of Hindustan Unilever Ltd Creating Shared Value in a VUCA World are organised to capture value as identified by the VRIO Analysis of Hindustan Unilever Ltd Creating Shared Value in a VUCA World. 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 Hindustan Unilever Ltd Creating Shared Value in a VUCA World.
• The Patents of Hindustan Unilever Ltd Creating Shared Value in a VUCA World are not well organised as identified by the Hindustan Unilever Ltd Creating Shared Value in a VUCA World 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 Hindustan Unilever Ltd Creating Shared Value in a VUCA World starts selling patented products before the patents expire.
• The distribution network of Hindustan Unilever Ltd Creating Shared Value in a VUCA World is organised as identified by the VRIO Analysis of Hindustan Unilever Ltd Creating Shared Value in a VUCA World. Hindustan Unilever Ltd Creating Shared Value in a VUCA World 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 Hindustan Unilever Ltd Creating Shared Value in a VUCA World.

From the VRIO Analysis of Hindustan Unilever Ltd Creating Shared Value in a VUCA World, 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 Hindustan Unilever Ltd Creating Shared Value in a VUCA World is a competitive disadvantage. Research and Development is also a competitive disadvantage.