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Briggs & Stratton VRIO / VRIN Analysis | Assignment Help
What is VRIO / VRIN Analysis ?
VRIO stands for – Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence.
VRIO is a resource focused strategic analysis tool.
To build a sustainable competitive advantage the resources that –casename— needs to be valuable, rare, and difficult to imitate. Secondly the –casename— needs to possess capabilities, organizational structure, and culture to optimize the available resources usage. VRIO analysis can help organizations such as Briggs & Stratton to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Briggs & Stratton? Defining Valuable in VRIO
A resource or capability is considered valuable for Briggs & Stratton , if it allows the
Briggs & Stratton to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Briggs & Stratton to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Briggs & Stratton.
What are Rare Resources for Briggs & Stratton? Defining Rare in VRIO
In an industry that Briggs & Stratton operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Briggs & Stratton require rare resources to compete in the industry. If Briggs & Stratton don’t have rare resources that are required to succeed in the industry then Briggs & Stratton won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Briggs & Stratton competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Briggs & Stratton? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Briggs & Stratton for certain period of time as all the competitors are going to try to imitate or replicate that resource. A sustained competitive advantage emerges, if the resource is difficult to imitate by the competitors. Briggs & Stratton can create inmitability by innovating on the product side, reducing pain points on service delivery, and having an effective post sales servicing strategy.
Check out the SWOT analysis of Briggs & Stratton
What is a Organization for Briggs & Stratton? Defining Organization in VRIO
Even if the Briggs & Stratton has all the valuable resources that are both rare and difficult to imitate, it won’t automatically result into a sustainable competitive advantage. The key to build the sustainable competitive advantage is to have organizational capabilities, expertise, and structure to exploit the resources. If Briggs & Stratton is not organized based on its strengths then it won’t able to exploit all the resources that it possesses.
Resources | Value | Rare | Imitation | Organization | Competitive Advantage |
---|---|---|---|---|---|
Pricing Strategies of Briggs & Stratton | Yes, Briggs & Stratton has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Briggs & Stratton with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Briggs & Stratton strategy is built on successful innovation and localization of products | Yes, as talent is critical to firm's growth | Difficult to imitate for the current competitors of Briggs & Stratton | To a large extent yes | Providing Strong Competitive Advantage |
Customer Community of Briggs & Stratton | Yes, as customers are co-creating products | Yes, the Briggs & Stratton has able to build a special relationship with its customers | It is very difficult for Briggs & Stratton competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Briggs & Stratton customers community ecosystem | Providing Strong Competitive Advantage |
Marketing Expertise within Briggs & Stratton | Yes, firms are competing based on differentiation in the industry | No, as most of the competitors also have good marketing departments and expertise | Pricing strategies of Briggs & Stratton are often matched by competitors | Yes, Briggs & Stratton is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the E-Commerce Space for Briggs & Stratton - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Briggs & Stratton can exploit the emerging opportunities | No, most of the competitors are investing in IT to enter the space | The AI and inhouse analytics can be difficult to imitate | It is just the start for the organization | In the long run it can provide sustainable competitive advantage |
Global and Local Presence of Briggs & Stratton | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Briggs & Stratton but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Alignment of Activities with Briggs & Stratton Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Briggs & Stratton | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Financial Resources of Briggs & Stratton | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Briggs & Stratton has reasonably sound financial position | Briggs & Stratton has relatively sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Briggs & Stratton in delivering lower costs | No | Can be imitated by competitors of Briggs & Stratton but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Successful Implementation of Digital Strategy at Briggs & Stratton | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Access to Cheap Capital for Briggs & Stratton | Yes, as a leading player in the industry and current macro economic conditions, Briggs & Stratton has access to cheap capital | No | Can be imitated by the competitors of Briggs & Stratton | Not been totally exploited | Not significant in creating competitive advantage |
Sales Force and Channel Management of Briggs & Stratton | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Briggs & Stratton sustainable competitive advantage. Potential is certainly there. |
Briggs & Stratton SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis
Books and References
Ahir Gopaldas and Anton Siebert (2022 July August) "What You’re Getting Wrong About Customer Journeys",
Harvard Business Review , 92
Linda A. Hill, Emily Tedards, and Taran Swan (2021) "Drive Innovation with Better Decision-Making", Harvard Business Review 86
Dyer, J. H., & Hatch, N. (2004). Using Supplier Networks to Learn Faster. Sloan Management Review, 45(3), 57–63
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120
Dyer, J. H., Kale, P., & Singh, H. (2004, July–August). When to ally and when to acquire. Harvard Business Review, 109–115
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