Vrio Framework Zara

What is VRIO framework?
The VRIO framework is an internal

analysis that helps businesses
identify the advantages and
resources that give them a
competitive edge. The VRIO
framework is an acronym for the
various measurements of success
that relate to your business. It
includes value, rarity, imitability, and
organization.
The VRIO Analysis of Zara will look

at each of its internal resources one
by one to assess whether these
provide sustained competitive
advantage. The Zara 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 Zara VRIO Analysis shows that
the financial resources of Zara are
highly valuable as these help in
investing into external opportunities
that arise. These also help Zara in
combating external threats.
According to the VRIO Analysis of

Zara, 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.

Zara'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.

Zara, its patents are a valuable
resource as these allow the firm to
sell its products without competitive
interference. This results in greater
revenue for Zara. These patents
also provide Zara with licensing
revenue.
Zara’s distribution network is a
valuable resource. This helps it in
reaching out
to more and more customers. This
ensures greater revenues for Zara.
It also ensures that promotion
activities translate into sales as the
products are easily available.

Zara, 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 research and development at
Zara 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 Zara. It is
recommended that the research
and development teams are
improved, and costs are cut for
these.
Rare
The financial resources of Zara are
found to be rare according to the
VRIO Analysis of Zara. Strong
financial resources are only
possessed by a few companies in
the industry.
The employees of Zara are a rare
resource as identified by the VRIO
Analysis of Zara. 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 Zara are a rare

resource as identified by the Zara
VRIO Analysis. This allows Zara to
use them without interference from
the competition.
The distribution network of Zara is a

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

VRIO Analysis of Zara. These can
be acquired by competitors as well
if they invest a significant amount in
research and development.
The employees of Zara are also not

Zara VRIO Analysis. This is
because other firms can also train
their employees to improve their
skills. These companies can also
hire employees from Zara by
offering better
compensation packages, work
environment, benefits, growth
opportunities etc. This makes the
employees of Zara a resource that
provides a temporary competitive
advantage.
The patents of Zara are very difficult

to imitate as identified by the VRIO
Analysis of Zara. Similar resources
to be developed and getting a
patent for them is also a costly
process.
The distribution network of Zara is

also very costly to imitate by
competition as identified by the Zara
VRIO Analysis. This has been
developed over the years gradually
by Zara.
Organisation
The financial 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 Zara.
The Patents of Zara are not well

organised as identified by the Zara
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 Zara starts selling patented
products before the patents expire.
The distribution network of Zara is

organised as identified by the VRIO
Analysis of Zara. Zara 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 Zara.
From the VRIO Analysis of Zara, 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 Zara is a competitive
disadvantage. Research and
Development is also a competitive
disadvantage.

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What is VRIO framework?

The VRIO framework is an internal

The VRIO Analysis of Zara will look

 According to the VRIO Analysis of

 The Zara VRIO Analysis shows that

 According to the VRIO Analysis of

 According to the VRIO Analysis of

 The Zara VRIO Analysis shows that

 The patents of Zara are a rare

 The distribution network of Zara is a

 The local food products are not that

 The employees of Zara are also not

 The patents of Zara are very difficult

 The distribution network of Zara is

 The Patents of Zara are not well

 The distribution network of Zara is

From the VRIO Analysis of Zara, it

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According to the VRIO Analysis of

The Zara VRIO Analysis shows that

According to the VRIO Analysis of

According to the VRIO Analysis of

The Zara VRIO Analysis shows that

The patents of Zara are a rare

The distribution network of Zara is a

The local food products are not that

The employees of Zara are also not

The patents of Zara are very difficult

The distribution network of Zara is

The Patents of Zara are not well

The distribution network of Zara is