Amore Pacific Firms Resources and Capabilities

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Amore Pacific Firms Resources and Capabilities Research Paper
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Updated: Aug 5th, 2022
Within the scholarly dimension, there is the resource-based view that may be determined as a foundation for competitive advantages of a company that results from the utilization of a number of important resources available to this company. The mentioned view serves as a basis for some theoretical frameworks, including VRIN. It should be emphasized that businesses can be considered as aggregates of resources. Firms tend to differ from each other depending on these resources. The latter provides companies with the opportunity to conduct their necessary activities significantly.

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However, it should be noted that not all resources available to a company can be considered pertinent. Some of them provide a firm with a competitive advantage indeed. They possess the VRIN traits that may be formulated as follows: value, rareness, imitability, and non-substitutability (Famuyide, 2017). VRIN analysis of Amore Pacific should be considered as a resource-oriented investigation utilizing relevant data. This analysis will be founded on the suggestion that essential resources would give the company the possibility to create and maintain sustainable competitive advantages and be more significant than the industrys rivals. These advantages are a great opportunity for the firm to get considerable profit margins and deal with the intense competition. This section aims to discuss Amore Pacific through the lens of the VRIN framework, appealing to essential data sets and background.

There are several features of Amore Pacific that can be considered sustainable competitive advantages. To begin, the company has a significant track record of project execution. It is valuable because the firm is involved in the industry in which a constant cost overturn is present. Then, it should be considered rare, given the fact that the competitors do not often pay enough attention to this aspect and prefer to focus rather on more global strategic aims. The companys track record of project execution is hard to imitate by the rivals as no even comparable practices among the competitors were identified. It cannot be perceived as substitutable as well; this approach contributes to the organized and efficient execution of all the firms activities.

Among the most notable aspects regarding Amore Pacific and its resources as a basis for competitive advantage, there are the companys financials. The firms financial resources are substantially valuable because they contribute to constant investments into various profitable projects and activities. Then, they help deal with the corporations struggle against different threats both internal and external which leads to confidence in Amore Pacifics future.

What is more, the financial opportunities available to the company might be perceived as rare, given that only a few entities possess similar financials. This contributes to a visible impact on the market and the possibility to affect the business environment in the region. These financial resources are too costly to imitate by others. Amore Pacific obtained them after a long period in the market and the related profits (EMIS, 2021). Here, it might be stated that the financial resources available to the company cannot be considered substitutable because they are a key aspect allowing Amore Pacific to affect the market in its favor.

Another noticeable source of competitive advantage of Amore Pacific is its distribution network. The latter is valuable because it helps the firm reach many customer segments, resulting in increased profits and significant benefits (EMIS, 2021). This ensures that promotional campaigns are converted into sales, given that the products can be obtained without difficulties. The corporations distribution network is rare as well due to the related investments and effort required to develop such a complicated and efficient system. Only several entities have the same effect from their distribution networks.

The distribution network of the organization seems to be too costly to imitate by competitors. This system has passed a long way of developments, improvements, and investments, which would be very hard to follow by the others. Many specialists and a great extent of experience are required in this regard. The market does not show many other companies that demonstrate similar achievements in this regard. Only a few of them are trying to develop their distribution networks significantly. However, the absence of the expected results stresses the difficulties in the associated imitation. Finally, the distribution network is a non-substitutable resource as this is a solid foundation of the business that cannot be replaced by any other system, policy, or strategy.

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To summarize this section, there is a clear vision that Amore Pacific possesses a number of sustainable competitive advantages within the scope of the VRIN analysis. These advantages may be listed as follows: a significant track record of project execution, the firms financials, and the distribution network. In conjunction, these aspects allow the company to remain competitive in the long run, as well as to be able to address the issue caused by the intense rivalry in the industry. The VRIN analysis revealed that Amore Pacific demonstrates dedication to the appropriate organization of its both internal and external workflow, which results in the enhancement of the financials competitive advantage.

References
EMIS. (2021). Amore Pacific Corp. (South Korea). Web.

Famuyide, S. (2017). VRIN framework / VRIO analysis. . Web.

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Reading time 3 min
Type Research Paper
Pages 4
Words 830
Subjects Business Company Analysis
Language
English
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