Unit 4 Discussin 2-Analyzing Resources and Capabilities PDF

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Essays and Discussions for all assignments in MBA 5006...

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The VRIO framework is essential when assessing the value that a company brings to the market. This framework will help a company understand their current resources and if they satisfy all components of the VRIO model. Companies that possess the necessary resources to the meet criteria of the VRIO model will be able to gain a competitive advantage and ensure long-term success (Rothaermel, 2017). Nike seems to be applying the VRIO framework, and that has led to their competitive advantage in some areas. Nike's brand, marketing strategy, customer base, and product innovation are all components that align with the VRIO model. These four areas all have value as well as rarity, and it becomes increasingly difficult to imitate Nike's strategy due to these characteristics. Nike is organized and understands how to leverage their strengths to gain a competitive advantage. Nike's brand is distinguished, and there is no way for other organizations to replicate this brand. This company's marketing strategy is extremely valuable to sustaining a competitive advantage. They understand their customer base and how to target them effectively, which has led to success in their industry. Customer base and product innovation are resources that Nike can exploit to remain the most authentic and distinctive company in their market (Pratap, 2018). The unique resources are structured and supported to align with the competitive advantage. Nike is dedicated to bringing the best quality products to their customers and connecting those customers to the brand. Nike's culture allows them to use the VRIO model to create value and deliver state of the art technology. Staying innovative and remembering to make the customer feel like they are part of a family is what will ensure Nike's competitive advantage long-term. The key capabilities that can be exploited to provide opportunities for Nike are their value and inability to imitate their brand and products. Imitating Nike's brand along with the culture and products they have built is impossible, and this does not leave many options for other companies. Showing their value, knowing their strengths, and communicating the vision keeps them unique and allows them to use the S-O strategy, in which they can pursue new opportunities that fit their strengths (SWOT analysis, n.d.). I think with Nike's ability to create a positive culture inside their organization they can avoid several weaknesses. By promoting creativity, diversity, and collaboration, they are avoiding internal breakdown from happening. Companies that have weaknesses in their internal operations will see a breakdown which will leave them vulnerable to external threats. Overall, I do not believe there are any internal weaknesses should concern this organization. References: Pratap, A. (2018, June 4). Nike Strategic Analysis. cheshnotes. Retrieved from https://www.cheshnotes.com/nike-strategic-analysis/ Rothaermel, F. (2017). Strategic management concepts (3rd ed.). New York, NY: McGraw-Hill. "The VRIO Framework," page 113. SWOT analysis. (n.d.). Quick MBA. Retrieved from http://www.quickmba.com/strategy/swot/...