Question

1.Resource-Based View (VRIO Analysis)

Consider the iPhone Division of AAPL

use google facts

Complete table on the “Resource-Based View” Internal Analysis (see below).

This is Internal analysis which is company-specific analysis not environmental analysis that will apply to all companies in the industry..

You look at Apple to find unique attributes that provide one or more of the VRIO (Valuable, Rare, Costly to Imitate, Organization-Supported) attributes.

Prepare your list from in order of their strategic/competitive importance

You will probably need to add lines to complete your analysis.

RESOURCE/CAPABILITY	V	R	I	O	COMPETITIVE CONSEQUENCE

Answer 1

The resource based view is a model that analyzes the internal capabilities of the company in formulating a strategy to achieve sustainable competitive advantage.

The competitive advantage arises where-

1. The resources are valuable and costly to apply
2. The organisation can exploit opportunities or neutralize threats through the resources

Apple realised sustainable competitive advantage through a startegy that combined resource based view into their business model. The key strategic moves can be highlighted as-

• Combining hardware and software design into one device
• Mixture of intellectual resources in a socially complex way
  • Still simple to use
  • Creating a unique user experience
• Network of partners and suppliers that enable extension of own capabilities - with Microsoft and AT&T

Apple moved swiftly to capture the First Mover Advatage with Blue Ocean - they benefitted from learning and experience acquired as a result of being the first in the marketplace and successfully championed Customer Loyalty and Brand Reputation to create sustainable comepetitive advantage.

The top executive of Apple, Steve Jobs created a culture that fosters creativity and individuality. This has drawn talented people into the organisation which is loaded with superior knoeledge and know-how. All functions from design to engineering are built in-house thus vertically integrating the resources and capabilities. The benefit of this can be seen in the processes.The way of working the widely available raw materials in a way to manipulate and assemble to create the final product is protected by a patent making the resulting resource-comeptence a rare combination. This generates sustainable comepetitive advantage.

Apple's unrivalled innovation in product design and functionality was a source of distinct sustainable capability as its i-Tunes and i-Pods proved a hard act for competitors to follow. Apple is at forefront of digital media with its iPod portable music. Soon after Apple launched iPhone and entered the mobile phone market with focus on constant innovation and product development again providing Apple a distinct sustainable comepetitive advantage.

Resource	V	R	I	O	Competitive Consequence
First Mover Advantage	Yes	Yes	Yes	Yes	Sustained advantage with above normal performance
Brand Reputation	Yes	Yes	Yes	Yes	Sustained advantage with above normal performance
Customer Loyalty	Yes	Yes	Yes	Yes	Sustained advantage with above normal performance
User Freindly Design	Yes	Yes	No		Temporary advantage with above normal performance
iTunes	Yes	Yes	No		Temporary advantage with above normal performance
Innovation	Yes	Yes	No		Temporary advantage with above normal performance