Evaluation of Strategic Situations
1. Introduction
Resource-based views of an organization indicate that when a firm achieves the best results, they have put the available resources into good use. The process and strategy that the firm uses these resources give them the ability to perform well and gives a continuous unique competitive advantage to their customers. Determining the internal strengths and weaknesses of the firm is the best strategy to access the company’s performance. This is the reason for undertaking a resource-based view. For the firm to deliver a long-term competitive advantage, it should be valuable and Non-sustainable. This means that the resources should be rare to find. By engaging with the Resource-based view tools, the discussion will explore whether Virginia group company creates a competitive advantage for its customers bearing in mind the tools used in nurturing resources and competencies in its strategic administration and marketing environment.
Virginia company group is a global organization that deals with various products from various companies. The organization controls many industries in the world. The group mainly focuses on producing Virginia products such as virgin airlines, virgin radios, virgin fertilizer, and many other products. the company was founded in the 1970s by Richard Branson.
Based on the resource-based theory that stipulates that economic resources are helpful, scarce and hard to imitate, and Non-substitutable, the Virginia company group creates a competitive advantage as it can create value from the scarce resources such as (Barney Ketchen and Wright, 2021); highly skilled labor, ability to access natural resources that are limited to competitors, its strategic and unique location, has power to integrate new technology in its working environment, brand image recognition and its ability to manufacture products at the low costs and spending (Barney, 2021). For any company that needs success in its operating environment, these are the kind of resources they need to put in place, which Virginia has done to create a good competitive advantage for customers.
The theory strongly supports the strategic human resource management principle, which signals that resources in the Virginia group, such as human labor, cultivate a unique feature and nature which creates a substantial competitive advantage for customers. In the critical competitive market, Virginia has collected all the viable resources, which has helped it to make a strong competing base with other firms (Rietveld, and Schilling, 2021). This means that Bransons main aim was to drive competitive growth in its external environment which made him through his organization departmental managers examined the firms internal resources and strengths strength as the principal origin of competitive strength and advantage for customers (Nagano, 2020).
Virginia has gained a competitive advantage from the well use of the human resource office to obtain qualified labor. (Handayani and Karnawati, 2020, March), For strategic purposes, Virginia has been keen on gaining competitive superiority through the use of professional staff in production as part of their internal strength. As per the resource based views, having a qualified production labor, (Kotler Kartajaya and Setiawan, 2021) Virginia has made it easy for them to produce quality products that customers in their market are becoming more loyal to them as compared to other firms thus gaining competitive advantage.
Resource-based Review stipulates that when an organization builds a strong technology in its environment, then the firm is going to have a significant competitive advantage. Virginia has a technology-based advantage. (Bandarian, R., 2020), Technological advantage has made Virginia more customers in the market. This is so because Virginia has been pressurized to continuously innovate better ways to get good competitive results in a profound environment. the integration of new technology in the production line of Virginia group has caused success to them. Virginia is more keen on Globalization; this is one of the main factors that has revolutionized society, business life, and the economy of countries in many ways (Febrian et al., 2019).
Virginia has been able to gain market advantage due to its technological innovativeness thus giving it an upper hand in the more competition cultivated environment. Branson has ensured that Virginia acts as monopolists in the competitive market through the use of advanced technology as a resource (SALAHUDIN, S.N., 2020), that is based on its substantial technological advancements frequently used in the market. The company has strategized easy and quick ways to win access to its customers through internet blogging (Gupta, S. and Ramachandran, D., 2021). The group, by making good use of digital marketing, has developed its technology by use of mail ordering of products which serves as a competitive advantage in its distribution channel.
The
Good leadership is hen well used, drives the company’s growth and brings about a competitive advantage over the organizations competitors as explained by the resource-based Review (Mohamed et al., 2021). Branson has created a good and unique leadership strategy at Virginia which is characterized by a unique combination of energy from junior staff, motivation, and shrewdness. (Kruse, 2020) This leadership strategy has made the organization to run smoothly as Branson has given mandate to the professional departmental managers to make most of the decisions in the company. However, (AUJIRPONGPAN and HAREEBIN, 2020) the junior staff has the mandate to make some minor decisions in the organization which makes them to be more creative in production. Virginias leadership depends on originality and guile, and Branson has tried to create a good environment that motivates his employees by issuing a general sense of direction. As stipulated by the RBV, leadership as a resource in this company has been utilized for years which has helped in creating a favorable environment to workers which helps to enhance creativity to employers (Kreyenberg, 2020).
The group has achieved a competitive advantage due to its ability to utilize the available resources in its internal environment; that is, technology, leadership, available natural resources which are restricted to other companies. The success in attaining a good competitive advantages has been achieved due to good recruitment strategy that the Human resource office practices. Also, the renewal of natural resources has been a good deal for Virginia’s success in gaining more competitive advantage. More preferably, Virginia’s leadership strategy and style by Bronson is the key factor that is driving good competitive advantage for customers as stipulated by RBV, Virginia has practiced well utilization of its resources.
2. Porters five forces.
The five forces that are found in porter’s model are very important in getting the extent to which a specific industry or organization faces competition from other specific industries. At the beginning Michael porter was interested in assessing and evaluating the competitive advantage based on the firm’s strength and position of the business. This is the factor that made porter develop this model. In his model, he puts emphasize on the five forces that will enable an organization to improve its profitability with a condition that if the firm is ready to enforce improvement on the identified areas.
Porters model helps a firm to create stiff competition by exploring the beauty and attractiveness of a certain industry. The model recommends that a company can improve its profitability if its ready to follow the steps and do adjustments in its strategies. In the discussion, by application of porters model, we assess if the Virginia Atlantic group as part of Virginia main group is able to increase its profitability as pointed in the porters model.
Virginia Atlantic group has been facing difficulties in profit-making in the year 2020 and 2021 due to the effect of Covid19 and other barriers. Group C.E.O, gave a statement that the company has been facing difficulties in marketing their products due to civid19 restrictions; thus, the group in 2020 and 2021 were not expecting profits until 2022 when they will improvise new strategies. The organization is found in Atlantic USA with Virginia main group having 51% of the shares and 49% being owned by Delta airlines. In the year 2020, the organization almost fell off the market but the CEO funded it and gained its stability. However, the current performance is not good thus the question remains how the company can increase its annual profits.
The answer to the question on how the company can increase profitability was porter’s main aim, he wanted to solve long-term issues for any organization of gaining competitive advantage. At the first place, porter was aiming to spread an idea of how a company can get successful in the existing macro-environment by giving attention to casual variables to help give an explanation of superior performance from an existing organization through the use of the following forces that he identified (Mugo, 2020). Porter expressed that for a company (Virginia Atlantic) to gain success in a competitive environment, it has to look at the buyer’s bargaining power, the competitive rivalry among the existing firms, the threat of introduction of a new product that will act as a substitute to the existing one, the supplier power and the threat of entry of new firm in the market (Vidjak, 2019)
Porters model has impacts on the Virginia Atlantic and other industries in the market. The model broke down the microeconomic theory into 5 major forces that will drive improvement of profitability in the market where his primary concern was to give the industries time to adopt system thinking (Zinina Antamoshkina and Olentsova, 2020).
Porter developed the model in a way that he insisted that competitive rivalry was the most important force as compared to the others (Da Vinha, 2019). Porter defines competitive rivalry as the measurement of the extent to which organizations are competing in the market (Singh, Chhetri, and Padhye, 2022), where the most competing strong firms wins the customer advantage while other smaller firms with less competing abilities are driven out of the market (Lieberman, M., 2021).
With its product branding and price, using the porter’s model Virginia Atlantic has to make competitive moves to increase its profitability. Virginia’s goods lost value during the pandemic period, the company will be forced to reduce its product prices and focus on investing in product quality for it to win more customers in the market. Reducing the price of the product supplied to the market is the best market penetration strategy that
Virginia Atlantic can use to enter into a high competitive market (Shams, et al., 2021). If other firms are giving their product on the set market prices, Virginia has to go against the prices for it to return competitively to the market. Reduction of prices (Bruijl, 2018), will attract more customers to purchase their products more cheaply at this time, forcing other companies to reduce their prices or get swiped away from the market, thus leaving Virginia to enjoy monopoly power thus making maximum profits.
On the other hand, porter displays how the threat of entry of new firms will affect the market competition. If the government puts fewer restrictions or barriers for entry in the market, the existing firms will face stiff competition in the struggle to fight for the available customers. When there are no barriers to firms’ entry in the market, the new firms get advantaged to enter the market and take the available opportunities (Yeap et al., 2018). New entry of firms in the market will give Virginia time to reduce its prices before the new firms take over the market. This immediate action will help Virginia eliminate new firms from the market thus remaining as a monopolist (Mulloli et al., 2019)
Virginia company can be increase its profitability by taking note of the importance of supplier power in the market. According to (Motiani et al., 2021), the supplier power is the strategy that the service or goods provider will distribute his goods to customers. If the product provider has the ability to increase prices change the taste and quality of products, then the supplier power is in the hands of the product provider. However, customers may have poor price sensitivity habits and illiterate to understand price trends in the market regarding the product; this means supplier power is high (Motz, 2021). Virginia Atlantic will increase its profitability if it has the ability to differentiate its products and understand how and when to shift its prices in the market. They need to achieve supplier power for them to get back to gaining of high profits.
To sum up, by putting into application the porters model, Virginia Atlantic will be profitable again. Reducing of prices and gaining supplier power in the market by ensuring quality product differentiation has been achieved.
3. Corona Virus vaccine.
Coronavirus commonly known as “Covid19” has caused a lot of damages in the health sector in the world. Despite its aggressive nature and its characters of transmitting from one person to another at a fast rate, still many people in the world are reluctant to get vaccinated with the vaccine that the World Health Organization has been distributing to every country. Many governments in the world are now stranded together with the WHO on how to control the spread of this disease. Covid19 erupted in December 2019 in China where it has been transmitted to other countries due to migration and immigration factors. Since then, more than 200 million cases have been reported while a total of 6 million deaths have been recorded in the whole world. Covid19 has not only affected the health sector but also has brought big impacts on international and local trade markets, the transport sector, tourism sector and other sectors that control the economy of various countries as trade markets and country borders were forced to close down.
The World Health Organization is in its bid of trying to look for the cure, which has forced the governments cut off all the airlines and other cross-country boarders restrictions which meant restriction to freedom of movement from one country to another. Other governments have put more restrictions; for example, country lockdowns, social distancing, wearing of face masks and use of sanitizers before entering any public meeting or gatherings. However, this has just reduced the cases at a low percentage hence the government in partnership with WHO are trying to look for a strategy they can employ to make the covid19 vaccine a mandatory treatment to everyone in the world which is an excellent bid to control the spread of the disease and also extending lockdowns and other restrictions.
A new invasion of the covid19 is still knocking down our health systems in the world as high-speed transmissible variants are cultivating up where some survivors get severe health damage thus the governments should take a quick approach of developing a strategy of vaccinating everyone to control this inversion of this killer disease. The main aim of this approach is to minimize deaths, reduce the health burden caused by this disease and ensure protectionas we resume to our social-economic activities.
Conducting education to the existing population by giving them the dangers of living without being vaccinated. WHO together with the government should adopt a program that gives education to people on the importance of taking the civid19 vaccine (Lee, 2021). Such programs should be evaluated by the use of social media, use of posters as it takes not on the available restrictions of banned public gatherings and education through radio stations. Through this, the population should gain the content of the reasons why they need to be vaccinated (Gantt et al., 2021).
The WHO in partnership with the government should pass vaccination law and must be adhered to if not it the unvaccinated individuals should face a heavy penalty; for example, creation of vaccination cards. Getting rid of covid19 is becoming a big problem in the world since many people do not want to get vaccinated despite large-scale production and supplying of the vaccine globally by the health organization (Blyth et al., 2021.). The government should develop new health regulations and penalties for individuals who have failed to get vaccinated. Some of the penalties (Mulligan and Harris, 2021), should include imposing fines on all individuals who fail to follow the order of vaccination, jail terms, pass laws that if a person is not vaccinated, his right of movement should be restricted to control the spread of Covid19. If the freedom of movement of a person is restricted, it will force him to get vaccinated.
These restrictions may include; restrictions on getting access to social amenities that include schools and being restricted from purchasing food products from hotels and public places. This will be done by issuing vaccination cards to every individual. The government (Aduhene, D.T. and Osei-Assibey, E., 2021), should put up a policy that the seller must ask the buyer to give out their vaccination card before selling goods to her before buying anything, hence the WHO together with the government has made the vaccination mandatory for everyone.
WHO should monitor health records of each country. After issuing of the covid19 vaccines to each country, the health organization should monitor the issuing out of the vaccines to the public by pressurizing the government to carry out this operation (Lindsey et al., 2021). This approach (Mbunge, Fashoto, and Batani, 2021), will be coherent where the WHO will have the ability to understand the trend of the issuing of the vaccines and know which countries individuals are reluctant to take the vaccine. For example, if a particular country has been issued with 2 million vaccines per month and the country has a population of 6 million people, when the world health organization assesses the record, it comes to realize that many out of 2million vaccines, only 1.2 million vaccines were issued to the public. Through this record (Nche and Agbo, 2022), the organization should bring up restrictions to this country; for example, economic sanctions to force the government to issue the vaccines.
On the other hand, the government should tighten increase the force on the ongoing restrictions which include; wearing of face masks when in public places, maintaining social distancing, using of sanitizers in washing hands, countrywide lockdown which will help the government to control the spread of the virus (Madan Bindal and Gupta, 2021). Despite the economic struggles that countries are going through, the governments should close down borders to restrict the migration and immigration to other countries to help control covid19 effectively (Fadlallah and El-Jardali, 2020).
In conclusion, WHO, together with the government should ensure the available restrictions to control the spread of covid19 are tightened up. In addition to this, the government should come up with approaches that will enable them to make vaccination of the covi19 vaccine is mandatory. These approaches include restriction of individual movement, taking away some individual rights on purpose of forcing them to get vaccinated, and giving education aid will help force individuals get vaccinated, thus controlling the spread of Covid19.
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