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VRIO of KFC

The VRIO Analysis of KFC will look at each of its internal resources one by one to assess whether these provide sustained competitive advantage.
The KFC VRIO Analysis also mentions at each stage whether these resources could be improved to provide a greater competitive advantage.
Lastly, the resources analysed are summarised as to whether they offer sustained competitive advantage, has an unused competitive advantage,
temporary competitive advantage, competitive parity or competitive disadvantage.

Valuable

The KFC VRIO Analysis shows that the financial resources of KFC are highly valuable as these help in investing into external opportunities that
arise. These also help KFC in combating external threats.

According to the VRIO Analysis of KFC, its local food products are a valuable resource as these are highly differentiated. This makes the perceived
value for these by customers high. These are also valued more than the competition by customers due to the differentiation in these products.

The KFC VRIO Analysis shows that KFC's employees are a valuable resource to the firm. A significant portion of the workforce is highly trained,
and this leads to more productive output for the organisation. The employees are also loyal, and retention levels for the organisation are high.
All of this translates into greater value for the end consumers of KFC's products.

According to the VRIO Analysis of KFC, its patents are a valuable resource as these allow the firm to sell its products without competitive
interference. This results in greater revenue for KFC. These patents also provide KFC with licensing revenue when it licenses these patents out to
other manufacturers.

The KFC VRIO Analysis shows that KFC’s distribution network is a valuable resource. This helps it in reaching out to more and more customers.
This ensures greater revenues for KFC. It also ensures that promotion activities translate into sales as the products are easily available.

According to the VRIO Analysis of KFC, its cost structure is not a valuable resource. This is because the methods of production lead to greater
costs than that of competition, which affects the overall profits of the firm. Therefore, its cost structure is a competitive disadvantage that needs
to be worked on.

The KFC VRIO Analysis shows that the research and development at KFC is not a valuable resource. This is because research and development
are costing more than the benefits it provides in the form of innovation. There have been very few innovative features and breakthrough
products in the past few years. Therefore, research and development are a competitive disadvantage for KFC. It is recommended that the
research and development teams are improved, and costs are cut for these.
Rare

The financial resources of KFC are found to be rare according to the VRIO Analysis of KFC. Strong financial resources are only possessed by a few
companies in the industry.

The local food products are found to be not rare as identified by KFC VRIO Analysis. These are easily provided in the market by other
competitors. This means that competitors can use these resources in the same way as KFC and inhibit competitive advantage. This means that
the local food products result in competitive parity for KFC. As this resource is valuable, KFC can still make use of this resource.

The employees of KFC are a rare resource as identified by the VRIO Analysis of KFC. These employees are highly trained and skilled, which is not
the case with employees in other firms. The better compensation and work environment ensure that these employees do not leave for other
firms.

The patents of KFC are a rare resource as identified by the KFC VRIO Analysis. These patents are not easily available and are not possessed by
competitors. This allows KFC to use them without interference from the competition.

The distribution network of KFC is a rare resource as identified by the VRIO Analysis of KFC. This is because competitors would require a lot of
investment and time to come up with a better distribution network than that of KFC. These are also possessed by very few firms in the industry.

Inimitable

The financial resources of KFC are costly to imitate as identified by the KFC VRIO Analysis. These resources have been acquired by the company
through prolonged profits over the years. New entrants and competitors would require similar profits for a long period of time to accumulate
these amounts of financial resources.

The local food products are not that costly to imitate as identified by the VRIO Analysis of KFC. These can be acquired by competitors as well if
they invest a significant amount in research and development. These also do not require years long experience. Therefore, the local food
products by KFC provide it with a temporary competitive advantage that competitors can too acquire in the long run.

The employees of KFC are also not costly to imitate as identified by the KFC VRIO Analysis. This is because other firms can also train their
employees to improve their skills. These companies can also hire employees from KFC by offering better compensation packages, work
environment, benefits, growth opportunities etc. This makes the employees of KFC a resource that provides a temporary competitive advantage.
Competition can acquire these in the future.
The patents of KFC are very difficult to imitate as identified by the VRIO Analysis of KFC. This is because it is not legally allowed to imitate a
patented product. Similar resources to be developed and getting a patent for them is also a costly process.

The distribution network of KFC is also very costly to imitate by competition as identified by the KFC VRIO Analysis. This has been developed over
the years gradually by KFC. Competitors would have to invest a significant amount if they are to imitate a similar distribution system.

Organized

The financial resources of KFC are organised to capture value as identified by the VRIO Analysis of KFC. These resources are used strategically to
invest in the right places; making use of opportunities and combatting threats. Therefore, these resources prove to be a source of sustained
competitive advantage for KFC.

The Patents of KFC are not well organised as identified by the KFC VRIO Analysis. This means that the organisation is not using these patents to
their full potential. An unused competitive advantage exists that can be changed into a sustainable competitive advantage if KFC starts selling
patented products before the patents expire.

The distribution network of KFC is organised as identified by the VRIO Analysis of KFC. KFC uses this network to reach out to its customers by
ensuring that products are available on all of its outlets. Therefore, these resources prove to be a source of sustained competitive advantage for
KFC.

From the VRIO Analysis of KFC, it was identified that the financial resources and distribution network provide a sustained competitive advantage.
The patents are a source of unused competitive advantage. There exists a temporary competitive advantage for employees. There exists a
competitive parity for local food products. Lastly, the cost structure of KFC is a competitive disadvantage. Research and Development is also a
competitive disadvantage.
In order to determine whether these internal resources give KFC a prolonged economic edge, the VRIO Analysis will examine each
one of them individually. The KFC VRIO Analysis also discusses whether these tools might be enhanced to offer a larger competitive
edge at each step. Finally, a summary of the resources under consideration is given, including whether they provide a continuous
competitive advantage, an untapped competitive advantage, a temporary competitive advantage, competitive parity, or competitive
loss.
In the following, we will use the KFC VRIO Analysis will examine internal resources to determine whether they give KFC an
economic advantage.

First of all, The KFC VRIO Analysis demonstrates the high value of KFC's financial resources, which are used to engage in new
exterior possibilities and fend off dangers from without. It also demonstrates how important KFC's staff is to the company, as a
sizable percentage of the workforce has received advanced training. KFC's patents are a valuable asset, as they enable the
company to market its goods free from competition. Additionally, KFC's delivery network is a valuable resource, as it enables it to
connect with an increasing number of clients and generate more income. However, its pricing structure is not a useful resource, as
the production processes result in higher expenses than those of the competitors, which has an impact on the firm's total
profits.Another that the KFC brand has a strong equity and recognition globally, as it signifies quality food, fast service, and delicious
taste but the research and development teams should be reduced expenses.

About Rare, The VRIO Analysis of KFC reveals that the company has a rare financial means and that local culinary items are
contrary. The VRIO Analysis also found that the company's workers are a scarce resource due to their extensive training and
expertise. KFC's inventions are also scarce, as they are hard to come by and are not held by rivals. In additionally KFC's delivery
network is a scarce resource, as it would take a lot of money and effort for rivals to develop a delivery network that is superior to
KFC's.

The third factor of VRIO is Inimitable, The KFC VRIO Analysis determined that it would be expensive to replicate KFC's financial
means, as the business has gained these resources over the years through consistent profits. However, it is not that expensive to
copy local culinary items, as rivals spend a lot of money on research and development. Additionally, KFC workers are not expensive
to copy due to the fact that other businesses can train their workers to increase their abilities. KFC's inventions are very challenging
to copy, as copying a trademarked product is illegal and the procedure of creating comparable tools and obtaining a patent for them
is also expensive. Lastly, it would be extremely expensive for competitors to copy KFC's delivery system, as KFC has steadily refined
this over the years.

The KFC VRIO Analysis revealed how the company's financial tools are set up to maximize value. These resources are carefully
employed to make the correct investments, take advantage of chances, and counter threats. The KFC Patents are not well
organized, indicating that the organization is not making the most of these rights. The VRIO Analysis also revealed that KFC has
organized its delivery network to ensure that products are accessible at all of its locations, allowing it to maintain its economic edge.

The financial means and distribution network of KFC are recognized as providing a sustained economic edge from the VRIO
Analysis. The patents represent an untapped source of economic edge. Their employees is a momentary economic edge and local
culinary items are competitively equal. Last but not least, KFC's expense framework hurts its ability to compete. Additionally, R&D
puts companies at a competitive deficit.
Good day everyone! In the following, we will be discussing the VRIO Analysis of KFC, which examines the internal resources of the
company to determine if they give it an economic advantage.

KFC has several valuable resources that provide a sustained economic edge. First, their financial means and delivery network
enable them to engage in new opportunities and fend off external threats. Second, their workforce is extensively trained, giving them
a valuable skill set. Third, KFC owns several patents, giving them exclusive marketing rights. Fourth, their delivery network enables
them to reach a vast clientele, generating more income.

While KFC's resources have value, not all are rare. Local culinary items are similarly available from competitors. However, financial
means, patents, and their delivery network are all rare and hard to replicate, giving KFC a unique advantage over its competitors.

KFC's resources are incredibly challenging to imitate, especially their financial means, which they have gained over time through
consistent profits. Their patents, too, are difficult to copy, making them a valuable and untapped source of an economic edge.
However, their workforce and local culinary items can be reproduced by other businesses.

One area where KFC needs to improve is in their pricing structure, as their production processes result in higher costs than their
competitors. Additionally, KFC should reduce expenses relating to research and development, as this puts them at a competitive
deficit.

In summary, KFC holds several valuable and rare resources that provide a sustained economic edge, including financial means and
delivery network, an extensively trained workforce, and exclusive patents. However, KFC's expense framework puts them at a
disadvantage compared to their competitors, and their patent resources are untapped.
1.4.1. Valuable

 The KFC VRIO Analysis demonstrates the high value of KFC's financial resources, which are used to engage in new exterior
possibilities. These also aid KFC in fending off dangers from without.
 KFC's local food items are a useful resource because they are extremely distinctive, according to the VRIO Analysis of the
company. Customers therefore consider these to be of high worth. Due to the uniqueness of these goods, customers esteem
them higher than the competitors.
 The KFC VRIO Analysis demonstrates how important KFC's staff is to the company. A sizable percentage of the workforce
has received advanced training, which boosts the organization's production productivity. Additionally, the workforce is
devoted, and the company enjoys high employee attrition rates. The worth of KFC's goods will increase as a result of all of
this.
 KFC's patents are a valuable asset, according to the VRIO Analysis, as they enable the company to market its goods free
from competition. As a consequence, KFC earns more money. When KFC grants licenses to other makers under these
trademarks, it also receives licensing income.
 The KFC VRIO Analysis demonstrates the importance of KFC's delivery network as a resource. This enables it to connect
with an increasing number of clients. As a result, KFC will generate more income. Additionally, because the goods are readily
available, it guarantees that promotional efforts result in sales.
 The VRIO Analysis of KFC indicates that its pricing structure is not a useful resource. This is because the production
processes result in higher expenses than those of the competitors, which has an impact on the firm's total profits. Therefore, it
needs to address its pricing structure, which is a competitive drawback.
 KFC brand has a strong equity and recognition globally. The KFC brand name signifies quality food, fast service, and
delicious taste.
 According to the KFC VRIO Analysis, KFC's research and development is not a useful resource. This is because the costs of
research and development outweigh the advantages that invention brings. In the last few years, there haven't been many
groundbreaking goods or novel features. Research and development therefore put KFC at a competitive disadvantage. It is
advised that the research and development teams be strengthened and that their expenses be reduced.

1.4.2. Rare
 The VRIO Analysis of KFC reveals that the company has scarce cash means. Only a small number of businesses in the
sector have substantial cash means.
 According to the KFC VRIO Analysis, the local culinary items are not discovered to be uncommon. These are readily
available on the market from rival businesses. This implies that rivals could use these resources similarly to KFC and
undermine economic edge. This indicates that KFC is competitively parity with local culinary goods. KFC can continue to use
this resource because it is useful.
 The VRIO Analysis of KFC determined that the company's workers are a scarce resource. Unlike employees at other
companies, these workers have extensive training and expertise. These workers are less likely to depart for other companies
because of the improved pay and working conditions.
 The KFC VRIO Analysis found KFC's inventions as a scarce resource. These rights are hard to come by and are not held by
rivals. As a result, KFC can use them unhindered by rival restaurants.

 The VRIO Analysis of KFC determined that the company's delivery network is a scarce resource. This is due to the fact that it
would take a lot of money and effort for rivals to develop a delivery network that is superior to KFC's. Very few businesses in
the sector also have these.

1.4.3. Inimitable
 The KFC VRIO Analysis determined that it would be expensive to replicate KFC's financial means. The business has gained
these resources over the years through consistent profits. For rivals and new newcomers to amass these sums of money,
they would need to generate comparable earnings over a protracted period of time.
 The VRIO Analysis of KFC revealed that it is not that expensive to copy local culinary items. If rivals spend a lot of money on
research and development, they can also obtain these. Additionally, these do not call for years of expertise. As a result,
KFC's local culinary offerings give it a short-term competitive edge that rivals can eventually match.
 The KFC VRIO Analysis found that KFC workers are not expensive to copy. This is due to the fact that other businesses can
train their workers to increase their abilities. These businesses can attract KFC workers by providing higher pay, benefits,
working conditions, career possibilities, etc. As a result, KFC workers are a resource that offers a short-term competitive
edge. These may eventually be acquired by the competition.
 According to KFC's VRIO Analysis, its inventions are very challenging to copy. This is due to the fact that copying a
trademarked product is illegal. The procedure of creating comparable tools and obtaining a patent for them is also expensive.
 According to the KFC VRIO Analysis, it would be extremely expensive for the competitors to copy KFC's delivery system.
KFC has steadily refined this over the years. If competitors want to copy a comparable distribution method, they would need
to spend a lot of money.

1.4.4 Organized 
 The KFC VRIO Analysis revealed how the company's financial tools are set up to maximize value. These resources are
carefully employed to make the correct investments, take advantage of chances, and counter threats. As a result, KFC is able
to maintain its economic edge thanks to these resources.
 As shown by the KFC VRIO Analysis, the KFC Patents are not well organized. This indicates that the organization is not
making the most of these rights. If KFC begins selling copyrighted goods before the patents expire, an untapped competitive
edge could be transformed into a long-lasting one.
 The VRIO Analysis of KFC has organized the delivery network of the fast food chain. KFC makes sure that products are
accessible at all of its locations using this network to connect with its consumers. As a result, KFC is able to maintain its
economic edge thanks to these resources.

The financial means and distribution network of KFC are recognized as providing a sustained economic edge from the VRIO
Analysis. The patents represent an untapped source of economic edge. Employees have a momentary economic edge. Local
culinary items are competitively equal. Last but not least, KFC's expense framework hurts its ability to compete. Additionally, R&D
puts companies at a competitive deficit.

The financial means and distribution network of KFC are recognized as providing a sustained economic edge from the VRIO Analysis. The patents
represent an untapped source of economic edge. Their employees is a momentary economic edge and local culinary items are competitively
equal. Last but not least, KFC's expense framework hurts its ability to compete. Additionally, R&D puts companies at a competitive deficit.

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