Question

Automatic Data Processing(ADP) is the company. 1) A good place to start with an internal firm analysis is to catalog the assets a firm has. List the firm's tangible assets. Then make a seperate list of its intangible assets 1a.Then use the VRIO framework to identify the competitive postion held by your firm. Which, if any of these resources are helpful in sustaining the firms competitive advantage?

Answer 1

1) The company was formed as a joint venture Minnesota mining and manufacturing company (3M) of the USA and scinitar investment and Trading Co. Pvt. Ltd.

The company is manufacturing telecommunication connectors and gearing itself to manufacture specialty pressure sensitive coated tapes for medical /surgical and packaging applications and specialty chemicals and Keanics-electronics city near Bangalore. The company entered into a technical agreement with 3M on 17^th March for transfer and imparting of the technical data.

Cost leadership strategy of 3M is using in relative cost is not an absolute one. the company has delivered business in at least 6 different areas and to be a cost leader in of these market is a big deal therefore 3M has relatively low cost in any the business.

Being at top of the innovators they follow some of the innovative strategies. Like 25/5 rule financial decision like 25% of the company's profit should come from products which are more than 5 years old. 7% rule for every one dollar sales 7% will be spent to R&D.

So these features and competencies make the company different from others.

2) VRIO framework:

Valuable:

The value of the technology exchange is reflected in boosting innovation. Thus one technology platform can generate profit in different industries. In reverse, one market can benefit from the expertise of varying technology platforms. This provides a high value for 3M's competitive advantage

Rare

There is a necessity for high financial recourses to secure the rareness of this competitive advantage.

therefore, only large companies can only invest and maintain their rareness.

Imperfect imitability:

This complex system of technology exchange among several markets is due to the experience of over 100 years. During this period the coordination was further developed and adapted according to the market situation and the needs of the company. the history of depended condition leads to an imperfect. as they have been always investing in all the things for R&D and innovation it's not easy to be imitated.

Organization:

From the organizational points of view, 3M has built its company to support the technology exchange in the best way.

So the company technology their invitation and financial ability is differentiating them from other and these are their competencies.