Business Analysis

Apple Vrio Analysis

A Complete Vrio Analysis of Apple

vrio-analysis-of-apple-pdf-report.png

What is Vrio Analysis 

The Vrio analysis is a strategic planning technique that assists firms in identifying and protecting the resources and abilities that provide them with a long-term competitive advantage. It's important to realize that when we talk about a Vrio analysis example, we're not talking about a list of your talents, which are things you excel at but aren't necessarily unique to your firm. We're also not talking about short-term gainable and competitive advantages that will be difficult for competitors to duplicate soon; they are also a critical component of firm success.

Whether businesses have one or numerous long-term competitive advantages, a Vrio framework may help you identify and capitalize on them. We will focuse your attention on the Vrio analysis of Apple, one of the most successful companies in the world.

Background of Apple

Apple Inc. is an MNC, a multinational technology corporation based in the United States that focuses on consumer electronics goods, software, and internet services.

It creates, manufactures, and sells smartphones, tablets, personal computers (PCs), portable devices, and wearable gadgets. In addition, the firm sells software and related services, accessories, networking solutions, and third-party digital content and apps. Apple's product lineup consists of the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV. It provides a wide range of consumer and professional software programs, including iOS, macOS, iPad, watchOS, iCloud, AppleCare, Apple Pay, and accessories. Apple sells and distributes digital content and apps via the Apple Store, App Store, Apple Arcade, Apple News+, Apple Fitness+, Apple Card, Apple Pay, and Apple Music. The corporation has operations in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Apple's headquarters are in Cupertino, California, in the United States.

Company  

Apple

Industry  

Technology and Communications 

CEO

Tim Cook

Founded 

April 1, 1976

Location  

1 Apple Park Way, Cupertino, California, 95014-0642

Revenue (2021)

365.8 billion Dollars

apple-vrio-analysis-2.png

Image Source: www.unsplash.com

Vrio Analysis of Apple

Apple is a renowned technological company headquartered in Cupertino, California, in the United States. Founded by Steve Jobs, the firm is recognized worldwide for its emphasis on innovation and its wide variety of unique products, such as the Mac, iPhone, and iPad. The company's market value has increased at an alarming rate in recent months. Apple now has the most excellent market capitalization in the whole technology industry. Following the iPhone 11, Apple's market worth quickly surpassed the 1.3 trillion mark. The smartphone and technology industries have become increasingly competitive. Apple's primary product, the iPhone, accounts for most of its income.

However, Apple's market competitors in the smartphone and computing sectors are numerous. The competition for market dominance in the smartphone sector has become particularly heated, with Samsung and Huawei among Apple's main adversaries. Apple's dominance in the technology business is built on its significant competitive edge. Its business model and vrio framework are superior to most of its competitors.

 

The Apple Vrio analysis evaluates resources and capabilities based on the following criteria: 

• Value

 • Rare

 • Inimitable

 • Organization

Value

Vrio analysis example of Apple explains when a firm's resources are valued, they might be sources of competitive advantage or sustainable competitive advantage. Valuable resources are those that assist firms in capitalizing on opportunities, defending against dangers, and creating and increasing value for customers. If a company's resources are not valued, it will have a competitive disadvantage over its competitors.

Rare 

Rare resources are those vrio frameworks held by only one or a few organizations. Many enterprises' valuable resources cannot be the source of competitive advantages or sustainable competitive advantages.

Inimitable 

Apple’s vrio framework is inimitable, i.e., other companies cannot copy, obtain, or substitute it at a reasonable cost. Imitation can be of two types: directly replicating (duplicating) the resource or providing a comparable product/service (substituting).

Organization 

Apple's tangible and intangible resources may be valuable, unusual, and difficult for others to copy. But if Apple Inc. lacks in organizing these resources, they will become sources of untapped competitive advantage. To realize the maximum potential of its resources, as per Apple's vrio analysis, it must organize its policies, procedures, structure, culture, and management systems.

Resource or Capability

valuable

Rare  

Costly to imitate 

Exploited by organization

Competitive implication 

Financial  

yes

no

yes

Yes  

Temporary advantage

Fixed assets 

yes

yes

yes

yes

Temporary advantage 

Human Resources 

yes

yes

no

yes

Competitive advantage 

Technology  

yes

yes

yes

yes

Temporary

advantage  

Consumer loyalty 

yes

yes

no

yes

Competitive advantage

Location  

yes

no

yes

yes

Sustainable advantage 

Network and partnership 

yes

yes

yes

yes

Temporary advantage 

Resources  

Valuable

Rare

Imitation

organization

Competitive Advantage

innovation

yes

Yes, since skill is vital to a company's success.

Yes, but quite difficult to do so.

Yes  

sustainable

Competitive advantage

Strong Global presence 

yes

yes

no

yes

Competitive advantage 

Brand Equity

yes

yes

yes

Yes

Competitive Advantage

Marketing  

yes

yes

no

yes

Sustainable competitive advantage 

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Key Takeaways 

The Vrio analysis of Apple helps you understand how various businesses use their resources and abilities might help you understand why their overall performance varies. For a long-term competitive advantage, a company's resources or capability must value high, unique, and well-organized. Managers can use the Vrio analysis of Apple in PDF to assess their organization's resources and capabilities. VRIO (Valuable, Rare, Unique, and Organized) is an acronym for Valuable, Rare, Unique, and Organized.

Use PDF Agile for all your PDF-related paper activities; this will help you save time and effort.

References

RancordSociety is available at: https://www.rancord.org/apple-inc-vrio-analysis-core-competencies-competitive-advantages#:~:text=The%20VRIO%20analysis%20model%20evaluates,In%20this%20case%2C%20Apple%20Inc.

Notesmatic is available at: https://notesmatic.com/apple-vrio-analysis/

WonderShare EdrawMax available at: https://www.edrawmax.com/templates/1006810/

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