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VRIO Analysis in the Context of Apples Key Strategic Dilemmas Essay Example

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VRIO Analysis in the Context of Apples Key Strategic Dilemmas

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VRIO Analysis in the Context of Apples Key Strategic Dilemmas. SERVO as a framework refers to Strategy, Environment, Resources, Values and Organization, and those are the categories of interest in the analysis of Apple’s dilemmas. A proper consideration of the SERVO framework uses the different categories as the lenses out of which the conditions at Apple are evaluated. At its core the SERVO analysis is an analytical framework that constructs and tests the strategic decisions and actions of firms, and in this paper this framework is applied to Apple (Fleisher and Bensoussan 2007). As an analytical framework, the focus is on the relationships among the different elements in the framework, while at the same time being also able to look at the whole picture consisting of both the internal elements of the framework, the SRVO elements, and the E or environment element on the other hand (Fleisher and Bensoussan 2007b).

On the other hand, looking inwardly, the analytical framework is VRIO, which in essence allows for an examination of the internal state of a firm, in this case Apple, with a focus on capabilities and resources inside the firm, and what among those can be sources of competitive advantage that is sustainable. VRIO stands for Valuable, Rare, Expensive to Imitate, and Organized with regard to the value capture. At its core the VRIO framework is a way of gauging the internal resources as well as capabilities of the firm, with each of the categories in the VRIO acting as a kind of criterion that is also a test for funneling the resource through the criteria (Pesic, Milic and Stankovic 2012). A resource that meets all of the criteria in the framework is a source of competitive advantage that is sustainable. On the other hand, a resource that fails one of the criteria is a source of competitive advantage but only temporarily (Jurevicius 2013; Powalla and Bresser 2010).One can look at the controversial launch of the Apple Watch and the debate among industry pundits and business analysts regarding the financial, marketing and technical aspects of the product to get an idea of the complex dynamics of coming up with new products and innovations at Apple that truly leverage great internal strengths to come up with a source of competitive advantage that is sustainable in the long run. On the surface one can immediately say of course that Apple’s brand strength in itself is a great internal resource that is also a great fount of competitive advantage, in. VRIO Analysis in the Context of Apples Key Strategic Dilemmas.

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References

Davidson, J. (2015). The Apple Watch Edition Not Only Tells Time, It Also Tells Plenty About You. Time. [online]. Available at: http://time.com/money/3737857/the-apple-watch-edition-rich-jerk/ [accessed 3/10/2015].

Fleisher, C. and Bensoussan, B. (2007). Chapter 9: SERVO Analysis.. Business and Competitive Analysis PowerPoint Presentation. [online]. Available at: http://ptgmedia.pearsoncmg.com/imprint_downloads/ftpress/bookreg/9780131873667/Ch9.pdf [accessed 3/8/2015].

Fleisher, C. and Bensoussan, B. (2007b). Chapter 9: SERVO Analysis.. Business and Competitive Analysis: Effective Application of New and Classic Models. FT Press/Google Books. [online]. Available at: books.google.com [accessed 3/8/2015].

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Manjoo, F. (2015). Apple Watch Displays Your Digital World, at a Glance. The New York Times. [online]. Available at: http://www.nytimes.com/2015/03/10/technology/personaltech/apple-watch-displays-your-digital-world-at-a-glance.html?_r=0 [accessed 3/10/2015].

Pesic, M., Milic, V. and Stankovic, J. (2012). Application of VRIO Framework for Analyzing Human Resources Role in Providing Competitive Advantage. Book of Proceedings- Tourism and Management Studies International Conference Algarve 2012 vol. 2. [online]. Available at: http://tmstudies.net/index.php/ectms/article/viewFile/447/725 [accessed 3/8/2015].

Powalla C. and Bresser, R. (2010). Performance Forecasts in Uncertain Environments: Examining Predictive the Predictive Power of the VRIO Framework. Freie Universitat Berlin. [online]. Available at: http://www.wiwiss.fu-berlin.de/fachbereich/bwl/management/arbeitspapiere/Discussion_Paper_22-10.pdf [accessed 3/8/2015].

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