- 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 Daqi
Posted by Zachary Edwards on Mar-22-2018
The VRIO Analysis of Daqi will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage. The Daqi 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 Daqi VRIO Analysis shows that the financial resources of Daqi are highly valuable as these help in investing into external opportunities that arise. These also help Daqi in combating external threats.
- According to the VRIO Analysis of Daqi, 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 Daqi VRIO Analysis shows that Daqi'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 Daqi's products.
- According to the VRIO Analysis of Daqi, its patents are a valuable resource as these allow the firm to sell its products without competitive interference. This results in greater revenue for Daqi. These patents also provide Daqi with licensing revenue when it licenses these patents out to other manufacturers.
- The Daqi VRIO Analysis shows that Daqi’s distribution network is a valuable resource. This helps it in reaching out to more and more customers. This ensures greater revenues for Daqi. It also ensures that promotion activities translate into sales as the products are easily available.
- According to the VRIO Analysis of Daqi, 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 Daqi VRIO Analysis shows that the research and development at Daqi 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 Daqi. It is recommended that the research and development teams are improved, and costs are cut for these.
Rare
- The financial resources of Daqi are found to be rare according to the VRIO Analysis of Daqi. 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 Daqi 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 Daqi and inhibit competitive advantage. This means that the local food products result in competitive parity for Daqi. As this resource is valuable, Daqi can still make use of this resource.
- The employees of Daqi are a rare resource as identified by the VRIO Analysis of Daqi. 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 Daqi are a rare resource as identified by the Daqi VRIO Analysis. These patents are not easily available and are not possessed by competitors. This allows Daqi to use them without interference from the competition.
- The distribution network of Daqi is a rare resource as identified by the VRIO Analysis of Daqi. This is because competitors would require a lot of investment and time to come up with a better distribution network than that of Daqi. These are also possessed by very few firms in the industry.
Imitable
- The financial resources of Daqi are costly to imitate as identified by the Daqi 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 Daqi. 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 Daqi provide it with a temporary competitive advantage that competitors can too acquire in the long run.
- The employees of Daqi are also not costly to imitate as identified by the Daqi VRIO Analysis. This is because other firms can also train their employees to improve their skills. These companies can also hire employees from Daqi by offering better compensation packages, work environment, benefits, growth opportunities etc. This makes the employees of Daqi a resource that provides a temporary competitive advantage. Competition can acquire these in the future.
- The patents of Daqi are very difficult to imitate as identified by the VRIO Analysis of Daqi. 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 Daqi is also very costly to imitate by competition as identified by the Daqi VRIO Analysis. This has been developed over the years gradually by Daqi. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.
Organisation
- The financial resources of Daqi are organised to capture value as identified by the VRIO Analysis of Daqi. 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 Daqi.
- The Patents of Daqi are not well organised as identified by the Daqi 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 Daqi starts selling patented products before the patents expire.
- The distribution network of Daqi is organised as identified by the VRIO Analysis of Daqi. Daqi 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 Daqi.
From the VRIO Analysis of Daqi, 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 Daqi 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.
Layla Archei
5.0
The document was not full of proofs and the points that I required. Mark my words & hire this service. Thanks a lot!
Anna Jim
5.0
The arguments are very important for the validity of the paper and the assignment was brimmed up with the statements.
Lucy Alex
5.0
I was forced to choose Management that I definitely don't like. Thanks to this service that let me progress all semesters with good grades. What I'm today, credit goes to them.
Ashton Tristan
5.0
Highly recommended! This excellent service has excellent writers. Fast delivery and accurate paper. Thanks!
Next Articles
- Kennedy And The Bay Of Pigs Vrio Analysis
- NetApp: The Day To Day Of A District Manager Vrio Analysis
- Vista Sci Health Care Inc. Vrio Analysis
- Paramount Distributing Inc.: The Popcorn Predicament Vrio Analysis
- Hamilton Real Estate: Confidential Role Information For The CEO Of Estate One (BUYER), Spanish Version Vrio Analysis
- Lundberg Systems: 3 Vignettes Vrio Analysis
- Knox Electronics Vrio Analysis
- Medical Equipment Inc. In Saudi Arabia Vrio Analysis
- Premiere Distributing Inc.: The Popcorn Predicament Vrio Analysis
- Mistral Energy: A Tale Of Two Power Markets Vrio Analysis
Previous Articles
- Wal Mart Stores, Inc Vrio Analysis
- LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Vrio Analysis
- Will Social Media Kill Branding? Vrio Analysis
- Giberson's Glass Studio Vrio Analysis
- RelayFoods.com Vrio Analysis
- Merging Esso Iceland And Bilanaust (C) Vrio Analysis
- Howard Schultz: Building Starbucks Community (B) Vrio Analysis
- Astral Records Ltd., North America Vrio Analysis
- Managing A Public Image: Sophie Chen Vrio Analysis
- The Charles Schwab Corporation In 2007: Fixing And Redefining The Core Business 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!