Question

what is VRIO of merck?

Answer 1

VRIO framework is an analysis that conduct internal assessment. It examines each of the internal resources of an organization one by one in order to identify which resources provide source of competitive advantage for the firm.

VRIO of Merck Co Inc has assessed the valuable resources of the Merck Co. Inc and has concluded the following -

1) Among all the resources, the financial resources of the firm are the most valuable as they assist in investing into the external opportunities by the firm.

2) The food products are valuable resources as they serve point of differentiation for the organization, which could be served as sources of competitive advantage.

3) Likewise the employees and its patent also serve as source of competitive advantage. A big portion of total employee force is well trained and very competitive. The patents also protect the firm from competitive interference and earning good revenue.

4) The cost structure is not valuable sources as the methodology of production is costly as compared to competitors in the industry.

5) The patents of the organization are unused competitive advantage which can be turned into sustained ones. Distribution networks and financial resources serve sustained competitive advantage.