Vrio Analysis

In: Business and Management

Submitted By faithmaina
Words 632
Pages 3
VRIO analysis is a suitable strategic tool that is essential in evaluating the sustainability of a corporation’s competitive advantage. By analyzing the capabilities and resources of a firm, the management is able to identify the suitable approaches of increasing the firm’s market share and broadening the consumer base. One of the key elements encompassed in the VRIO framework entails the value of the identified capabilities and resources. In order to acquire a sustainable competitive advantage over other participants in the targeted market, a company ought to focus on the resources that increase a firm’s value. This includes the firm’s ability to exploit the available business opportunities and mitigate the potential risks.
A company can also enhance its competitive advantage by focusing on rare resources in the market. Most of the valuable resources, which are rare in the market, are costly for other companies to imitate. For this reason, corporations ought to organize their valuable resources in order to mitigate the potential business risks while maximizing the available opportunities. In order to present the VRIO analysis as a suitable tool in enhancing a firm’s competitive advantage, this discussion will compare and contrast True Religion Apparel Inc. and SodaStream International.
SodaStream International and True Religion Apparel Inc. have valuable resources that have aided the companies in enhancing their competitiveness. To begin with, SodaStream International produces and distributes different valuable products within the beverage industry. Its products include flavors, soda machines, carbonating bottles, and carbon dioxide canisters. These products have a high demand in the soft drink industry, an aspect that has enhanced the firm’s competitive advantage over its competitors. Similarly, True Religion Apparel Inc. presents itself as a successful…...

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