Understanding VRIO as the Most Effective Sales Strategy

VRIO analysis, developed by Jay B. Barney, is a competitive tool

essential to identify and evaluate the resources of an organization.

Whether financial, human, material, non-material, or organizational

capabilities, all resources are put to thorough analysis in the process

 of strategic planning and management. This in turn helps to take

impactful business decisions while boosting sales and expansion.

 To put in simpler words, the VRIO analysis is a tool that displays a

 transformation of company’s competitive advantage to sustained

competitive advantage.

Understanding VIRO as the Most Effective Sales Strategy

                                                                                                                      

Dimensions of VRIO Analysis

There are 4 parameters of evaluation in the VRIO analysis:

·         ‘V’ for Value

·         ‘R’ for ‘Rarity’

·         ‘I’ for ‘Imitability’

·         ‘O’ for ‘Organization’

‘V’ for ‘Value’ is the first parameter to analyze and evaluate

 the value of the resources to judge how beneficial the resources

are to the company. For example, if a firm makes use of human

capital management data to recruit skilled, knowledgeable, and

 innovative employees who come up with new inventions everyday

add an extra dimension to the company’s competitive advantage.

However, if these employees do not add any value to the company,

the firm goes in the mist of competitive disadvantage. In this scenario,

 the firm needs to reassess the acquisition and management of its human

resources.

 ‘R’ for ‘Rarity’ is the second parameter to analyze and evaluate the

rareness of the resources to ensure a strong and sustained competition

in the market while competitors try to find a substitute to overpower you.

If a firm puts forth its valuable resource to function without letting anyone

exploit the resources ensures then the firm enjoys rarity of its resources.

‘I’ for ‘Imitability’ is the third parameter to analyze the Imitability of the

resources to ensure sustained competitive advantage of the resources. This

 means that the resources are either too expensive or tricky to imitate or

duplicate by competitors. The resources that are time-consuming like software

and technologies that need investment of time for training and funds for

implementing are also not easily obtainable.  

‘O’ for ‘Organization’ is the fourth and last parameter to analyze the value

of an organization. It is important for any firm to have an organized structure

 and follow a streamlined approach to strategic planning and management

with an assurance of long-terms profits and high-end competition in the market.

Benefits of VRIO Analysis

Here are some of the key benefits of VRIO analysis:

• ·         Helps business take thoughtful decisions
• ·         Helps improve sales after thorough analysis of business situations
• ·         Makes it easy to formulate and execute sales strategy
• ·         Helps assess the potential for business improvements
• ·         Helps evaluate the competitive implications of business resources

Good Customer Service Skills for Better Business

The customers can make or break any kind of business. They are the key source stimulating the sales
and profit of any organization. Therefore, keeping them happy at all items should be the objective of
all organizations.  Strategies are made, policies are framed and infrastructures planned, all with only
one goal in mind, which is keeping the customers happy and coming back for more. Therefore, if your
employees are lagging in customer service skills, it bodes quite ill for the success of your business.

On the contrary, any organization that ranks high in the customer service department, not only retain

the original customer base but also has a much better chance to attract new ones in hordes. In today’s
age, news travels fast. Therefore, how you behave with your customers can be easily spread through
the social networks or word-of-mouth marketing.

Before you take a virtual tour to understanding the important skills and how to develop them, it is important that you learn about the 5 key methodologies that help provide better customer service in all fields of the professional kingdom. These methodologies form a complete circle of influence that help you resolve customer complaints while surpassing customer satisfaction. Tagged as the “The 5S Methodology”, it defines the five stages:

• Suno  - Listen actively
• Samjho - Understand the customer's download
• Sujhao - Reiterate your understanding about customers problem
• Samadhan - Propose a solution
• Shukriya - Say Thank you

Now, let us get into understanding some of the necessary customer service skills that include:

Learn about the product or service your company sells

In order to have a successful customer service skills you need to understand the product or the
service you are representing. Take time to study and understand it thoroughly. Only when you have
a clear and precise understanding will you be able to communicate it to others. One can know about
the product or the service through the training that the company imparts, through a hand’s on
knowledge or gradual experience. How well versed you are with the items and their uses determines
your customer service skills.

Having a deep understanding about the services or products that are part of your organization gives
you the confidence to represent them in the best possible light.

Pleasant behavior

Customers are looking forward to help and guidance from various representatives. Good customer
service skills includes a pleasant disposition and an inclination to be helpful when required. However,
when asked a question, your answers should be also clear and precise to ensure that the problems are
clarified thoroughly and the customers have a good understanding of the product and services that are
looking forward to buy.

Problem solving skills

It is not always smooth sailing for the representatives. From time to time, they need to deal with
disgruntled and unsatisfied customers. If dealt in the wrong manner you are never going to see them
again and are going to lose them forever. Problem solving communication skills are required in such
situations. Sometimes one needs to think on their toes. Such problem solving skills require a cool head
and a patient disposition because losing your cool just aggravates the problem.

Willingness to Travel the Extra Mile

When there is passion for sales, when there is willingness to travel the extra mile to keep customers
happy and satisfied, then the brand certainly raises its bar in the competitive business world. Be it
delivering the services or be it providing after-sale support, the approach should take a positive and
strategic path.

Sense of Personal Responsibility

A sense of personal responsibility towards the existing and prospective customers is what makes a
brand stand apart in any relationship with customers and business associates.Mistakes are human and
no one ever judges the representatives of an organization on the mistakes they make if they have the
courage to take the responsibility of their mistakes and failures as well.

This in turn would convert all the unsatisfied customers to brand supporters.