Vrio Analysis

III. Business Model and Strategic Plan Part II: SWOTT Analysis – Internal and External Environmental Analysis; Supply and Value Chain Analysis……………9

This case analysis will be focused on the company QVC (Quality, Value, and Convenience). We will perform an analysis review, which, will provide a comprehensive insight into the company’s historical and current business structures, strategies and efficiencies in their operations. It will include a detailed SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) (Humphrey) and the primary activities of the Value Chain Analysis (Porter), to provide greater insight into the firms’ competitive advantage. These key concepts will be used to analyze QVC’s business model, define potential challenges and initiate a plan of execution. We will then recommend solutions

If a firm’s resources are both valuable and rare, a firm may achieve a competitive advantage (Newbert, 2008). A resource is considered valuable when it improves the efficiency and effectiveness of a strategy, and when it exploits external opportunities or neutralises external threats (Barney, 1991). This wording is somewhat confusing as it draws a direct connection with the environmental model, i.e. Porter’s (1985) five forces. The ‘value’ variable could therefore be rendered exogenous to the RBV (Priem and Butler, 2001). On the other hand, Peteraf (1993) praises the model for its internal focus and ability to uncover potential sources of competitive advantage which cannot be attributed to the external environment, notably because areas of value are often so difficult to identify (Newbert, 2008). The term ‘potential’ is used because not all resources have the ability to create a SCA

A company or an organization can create competitive advantage only when it is able to distinguish itself from the rivals by implementing value creating strategy over a longer period of time. It is said to have sustainable competitive advantage when other rival firms are unable to duplicate the value creating strategy of firm which has led to achievement of

The VRIO Frameworks permits to see which tangible and intangible resources give Amazon its superior performance. The company has a competitive advantage over its rivals as Amazon focuses on its customers. Amazon offers a wide array of selection of goods at various prices to its millions of customers. Amazon has been able to keep this competitive advantage by leveraging its resources. For the resources to attribute to competitive advantage they must pass the VRIO framework. The VRIO framework states that a resource must be valuable, rare, costly to imitate, and organized to captured value. Each of Amazon’s tangible and intangible resources are evaluated to see which meet the above criteria.

Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources.

VA’s strengths and weaknesses are built based on the value chain assessment and SWOT analysis from the VA’s internal and external environment and the previous strategies. The environmental scanning was conducted and discussed relative to VA’s competition, as well as its strengths and weaknesses. In doing so, this analysis starts with the identified the strengths and weaknesses in the following graphs. VA strengths:

The VRIO framework evaluates resources and capabilities of a firm. Below is the evaluation of Targets VRIO framework.

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

Competitive strategy, after Porter, came to be defined as the strategy of a business unit which seeks to achieve sustainable Competitive Advantage (SCA). The literature on strategy deems the market-based view (MBV) and the resource –based view (RBV) as two approaches to giving businesses the competitive edge they need to compete in their industries. Aside from having competitive advantage as their ultimate goal, the two approaches are also similar in the sense that they both make use of particular tools and models in their undertakings. They also differ in numerous ways,

The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. Finally, Zara’s dynamic capabilities will be discussed to state how Zara used the resources based on their organizational culture.

VRIN framework is the four criteria of sustainable competitive advantage. To identify a company’s competitive advantage, they must consider if their capabilities are valuable, rare, costly to imitate and nonsubstitutable.

In order to identify BMW Group’s internal strengths and weakness, here applied strategic capability which combined three keys of resource: tangible resources, intangible resources, and competences. All of these resources enable a company to attain a sustainable competitive advantage (Dess et al, 2010).

Zappos, as the first and the world’s largest online shoes retailer, has developed a high quality experience and delivered “wow” to customers. It has established a strong relationship with customer and stick to bring the store to the customer’s home. It has used less twenty yeas to become a profitable company holding an outstanding reputation for customer service and its employee are passionately engage in their works. In this paper, I aimed to analyze the relationship between strategic capabilities and performance in Zappos’s success. The business environment is not constant rather than changeable, so how Zappos goes ahead of revival and forms its unique competency advantages. I will utilize VRIO test to detect the company’s level of competitive advantage. In addition, I will continually combine Barney’ theory of resource based view(RBV) with Zappos to identified which resources it processes and how Zappos used those to form its core competency.

To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’