Question

Suppose a egg farm has patents for a poultry housing that monitor's and regulates a chicken's body temperature and rest periods to stimulate more egg production. They are currently using it for egg-laSuppose a egg farm has patents for a poultry housing that monitor's and regulates a chicken's body temperature and rest periods to stimulate more egg production. They are currently using it for egg-laying hens only and have not applied this to their quail farm. Using VRIO, where would you rank this resource/capability?

A. Sustained Competitive Advantage
B. Temporary Competitive Advantage
C. Parity
D. Limited Benefit

Answer 1

The patented poultry housing which regulates a chicken's body temperature and rest periods likely provides a Sustained Competitive Advantage (VRIO grade A) due to its value addition, rarity, patent protection, and the organization's ability to capitalize on it effectively.

Step-by-step explanation:

To assess whether the patented poultry housing of an egg farm, which monitors and regulates a chicken's body temperature and rest periods to stimulate more egg production, constitutes a sustained competitive advantage under the VRIO framework, we should evaluate the following:

• Value: The system adds value by increasing egg production.
• Rarity: If the technology is patented, it is rare and not available to competitors.
• Imitability: The patents protect the system from being easily imitated by competitors.
• Organization: If the farm is organized to fully exploit the benefits of the system, it further strengthens competitive advantage.

Given these factors, the poultry housing resource/capability could be graded as A. Sustained Competitive Advantage due to it providing unique value, being protected by patents, and not easily imitable or substitutable, provided that the organization fully leverages this resource.