Short Discourse — Evaluating Apple’s resources and capabilities.
Evaluating the resources and capabilities of Apple Inc. based on material and information found on the internet, using the VRINE model.
Apple Inc is a global enterprise that deals with the design, production, and sales of digital/electronic products, this includes its wide range of hardware/software products and services. The company started out with the idea of building computers but shifted focus to other areas of consumer electronics. Apple Inc. has 517 retail outlets globally and they have been named the “world’s second most valuable company” as of May 2022. Over the years they have been able to sustain its value in the market and increase revenue. In this discussion, we will be evaluating the resources and capabilities of this company using the VRINE model.
VRINE model (Value, Rarity, Inimitability, Nonsubstitutability, and Exploitability) is an analysis tool that evaluates and accesses the resources and capabilities of a company. This analysis demonstrates how a company uses its resources and capabilities to attain a competitive edge, and how its products/services are distinctly different and more valuable than that of its competitors.
The first dimension of the VRINE model is Value, this focuses on the level of value that a company’s resource or capability has, and how it allows a company to utilize opportunities or pre-empt threats. It also shows how a company can provide value to its target market and how it may be exceptional in the midst of competition. According to Wikipedia, Apple is the world’s second most valuable company, the fourth-largest personal computer vendor by unit sales, and the second-largest mobile phone manufacturer. All these achievements are only possible because of the high rate of innovation, functionality, durability, and the use of advanced technology in their products and services.
The second dimension is Rarity, any resource that is not rare does not provide the company any competitive edge. While most of Apple’s products and services may not be considered rare because of innovation by other technological companies, they have the speed-to-market advantage. However, some of their services are rare to their devices alone, an example being the operating systems on their smartphones and personal computers, with the most recent emergence of their own processor — the M1 chip.
The next dimension is Inimitability and Nonsubstitutability, this gives a competitive edge only when other competitors have not caught up with providing the same products/services or a close substitute. As earlier mentioned in the rarity section above, Apple may not be considered inimitable or nonsubstitutable because of the continued rise of technological innovations in today’s world amongst their competitors. They have however managed to create and sustain a devoted target market that believes in the brand and the uniqueness of their products and services.
Finally, Exploitability happens when value is gotten from a resource or capability. If a company does not exploit its resources or capabilities then there will be no competitive edge. We have discussed some of the resources and capabilities that Apple possesses, they exploit these through their investments in marketing campaigns, retail management processes, improving their brand perception, and continuous research and development efforts.
Apple Inc. — Wikipedia. Available at: https://en.wikipedia.org/wiki/Apple_Inc. (Accessed: 11 June 2022)
Apple Store — Wikipedia. Available at: https://en.wikipedia.org/wiki/Apple_Store (Accessed: 11 June 2022)
Apple Official Website. Available at: https://www.apple.com/ (Accessed: 11 June 2022)
Barney, J. B. (1991) ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, 17(1), pp. 99−120.