The VRIO analysis of Sm Entertainment Business is a broad range analysis providing the company with a chance to get a viable competitive benefit versus its competitors in the food and drink market, summarized in Exhibit I.
Valuable
The resources used by the Sm Entertainment business are valuable for the business or not. Such as the resources like finance, personnels, management of operations and specialists in marketing. This are some of the essential important factors of for the identification of competitive benefit.
Rare
The valuable resources made use of by Sm Entertainment are even uncommon or expensive. If these resources are typically discovered that it would be easier for the competitors and the brand-new rivals in the industry to easily relocate competition.
Imitation
The replica procedure is expensive for the rivals of Sm Entertainment Business. It can be done just in two different methods i.e. product duplication which is produced and made by Sm Entertainment Company and introducing of the substitute of the products with switching cost. This increases the risk of disturbance to the recent structure of the industry.
Organization
This element of VRIO analysis deals with the compatibility of the business to place in the market making efficient usage of its important resources which are challenging to mimic. Regularly, the advancement of management is absolutely depending on the firm's execution method and group. Therefore, this polishes the skills of the firm by time based on the choices made by company for the progression of its tactical capitals.
Exhibit I: VRIO Analysis
