Thursday, 8 October 2015

VRIO Analysis


The Question of Value:  Does a resource enable a firm to exploit an environmental opportunity and/or neutralize an environmental threat?
*       Environmental Opportunity
        Result of trends in Malaysian parenting styles   
*      More two income households, fewer children per household, time
  poverty, etc. 
*       More disposable income per child
*       Inclination to spend that income on time saving services  and  items that alleviate parental guilt à like birthday party services
*       Resources
        Founding team and respective networks
*       Experience ranging from operations management to marketing event planning, and early childhood education
The Question of Rarity:  Is a resource currently controlled by only a small number of competing firms or are the resources used to make the products/services or the products/services themselves rare?
*       The resources for this type of business are not at all rare
The Question of Imitability:  Do firms without a resource face a cost disadvantage in obtaining or developing it?
(Is what a firm is doing difficult to imitate?)
*       There is no cost disadvantage to obtain resources
*       Our business concept would not be difficult to imitate

The Question of Organization:  Are a firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and
costly-to-imitate resources?
*       Resources are valuable
*       Resources are not exceptionally rare
*       Resources are not very costly to imitate

*       Business is organized to best use the resources  that we do have in our founding team and corresponding networks

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