VRIO
When researching VRIO there are 4 different questions that one must ask about a resource or capability to determine its competitive potential. Based off the answers to the following questions, you’ll realize whether or not your company has a competitive advantage or is just simply keeping their heads above water.
1. The question of value: does a resource provided allow Adidas to exploit an environmental opportunity?
Yes, Adidas has more value now than ever as they are reaching out to multiple demographics of people and thriving within each area.
2. The question of rarity: is the resource provided by adidas controlled by only a small number of competing firms?
Although most Adidas products are high in supply, there are a few products that they offer that allows the company to keep its exclusivity. Having limited supply of certain shoes also makes their demand go up.
3. The question of imitability: do other companies without a resource face a cost disadvantage in obtaining or developing it?
Yes, other companies face many problems when trying to imitate a lot of the innovative things Adidas brings to the table because Adidas does such a good job at branding themselves that other companies can’t do exactly what they do, they have to try to add an additional piece because what Adidas puts together is always so unique.
4. The question of organization: are a firms other policies and procedures organized to support the exploitation of its valuable, rare, and costly-to-intimate recourses?
Yes, Adidas has been around for quite some time and a brand as prestigious as this one would not be able to sustain without being organized and equipped to handle everything that comes with the business.
1. The question of value: does a resource provided allow Adidas to exploit an environmental opportunity?
Yes, Adidas has more value now than ever as they are reaching out to multiple demographics of people and thriving within each area.
2. The question of rarity: is the resource provided by adidas controlled by only a small number of competing firms?
Although most Adidas products are high in supply, there are a few products that they offer that allows the company to keep its exclusivity. Having limited supply of certain shoes also makes their demand go up.
3. The question of imitability: do other companies without a resource face a cost disadvantage in obtaining or developing it?
Yes, other companies face many problems when trying to imitate a lot of the innovative things Adidas brings to the table because Adidas does such a good job at branding themselves that other companies can’t do exactly what they do, they have to try to add an additional piece because what Adidas puts together is always so unique.
4. The question of organization: are a firms other policies and procedures organized to support the exploitation of its valuable, rare, and costly-to-intimate recourses?
Yes, Adidas has been around for quite some time and a brand as prestigious as this one would not be able to sustain without being organized and equipped to handle everything that comes with the business.
Comments
Post a Comment