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customer service. Not many organisations have the capabilities of maintaining well trained and qualified employees in this field. However, the products dealt in by the company are not rare. This is because the goods can be found or assembled in other areas. This may result in a competition. The distribution networks in the company are a rare resource because of its unique and robust nature. Competing firms will have to inject more capital to have an efficient supply chain system that is better than the one for Alibaba. The innovative capabilities are demonstrated by the company’s patents, which is a rare resource as they can only be found in the company. This allows the company to utilise it without competition.
Imitable It takes a lot of time to create financial resources built in the Alibaba company. As such, the financial resources of the company are costly to imitate. The employees of the firm are imitable as other organisations can higher and train their staff to become highly qualified and create a competitive advantage for the organisation. It will be costly and difficult for other organisations to imitate the distribution networks used by the organisation. It takes a lot of time and investment for a distribution network to work efficiently (Alibaba 2019). The innovative capabilities for the company are not imitable as it takes a lot of time and cost to create a unique idea and has a patent on it. The products and service range offered by the company are not costly to imitate as such other competitors can come up with the same kind of products Organization Alibaba has organised its financial assets in a way that adds value to the activities they operate in. This has allowed the company to make acquisitions and make an investment in other profitable avenues. Its innovative capabilities are having not been exploited and organised enough to create a competitive edge for the company. The patents and copyrights protecting its innovations have an expiry date, which limits the time for exploitation. The supply chain and distribution network are well organised to give the company a competitive edge in the market. The distribution channels are well organised to make the products available in time for their customers. ITEM VALUABLE RARE IMITABLE ORGANIZA-TION COMPETITIVE ADVANTAGE Financial Resources yes yes no yes yes Product & Service Range yes no yes yes no Human Resource yes yes no yes yes Innovative Capabilities yes yes no yes no
Supply Chain System yes yes no yes yes VRIO Matrix SWOT Analysis StrengthsAlibaba company has strengths that would give it an advantage in its entry into the U.S. market. 1.The company has strong brand recognition in China and other parts of the world which gives it an added advantage.