Answer to Question #209060 in Management for Asel

Question

the VRIO in Xiaomi company

Answer 1

Xiaomi's VRIO Analysis will examine each of its internal resources one by one to see if they provide a long-term competitiveness. The Xiaomi VRIO Analysis also states whether these resources could be upgraded to give the company a competitive advantage at each phase. Finally, the assets examined are ranked in terms of whether they provide a long-term comparative benefit, an underutilized competitive advantage, a transient competitive advantage, competitive parity, or competitive disadvantage.

Valuable:

The Xiaomi VRIO Analysis reveals that Xiaomi's financial resources are extremely significant, as they enable the company to engage in external prospects. These also assist Xiaomi in defending against external threats. For example, highly trained human resources/capital. Because a large section of the personnel is well trained, the organization's output is more productive. Employees are also loyal, and the company's retention rates are excellent. All of this adds value to Xiaomi's goods for its end users.

Rare

According to Xiaomi's VRIO Analysis, the company's financial resources are scarce. Only a few companies in the industry have substantial financial resources.

Xiaomi VRIO Analysis discovered that local products are not uncommon. Other competitors can readily give them on the market.They can still use the same products and inhibit competitive adavantage. For example, same smartphones sold across Samsum and Xiaomi. However, since it is valuable, Xiaomi will still make profit.

Imitable

The financial resources of Xiaomi is unique and therefore hard to imitate. The distribution framework is also very costly to copy. They have put together this asset for a long time. However, employees and products are easy to imitate.

Organisation

Xiaomi's financial resources are organized to capture value, as revealed by the VRIO Analysis. These funds are systematically allocated to invest in the correct places, taking advantage of opportunities and fending off dangers. As a result, these resources provide Xiaomi with a long-term competitive advantage.