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Samsung Group 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 Samsung Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Samsung Group? Defining Valuable in VRIO
A resource or capability is considered valuable for Samsung Group , if it allows the
Samsung Group to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Samsung Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Samsung Group.
What are Rare Resources for Samsung Group? Defining Rare in VRIO
In an industry that Samsung Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Samsung Group require rare resources to compete in the industry. If Samsung Group don’t have rare resources that are required to succeed in the industry then Samsung Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Samsung Group competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Samsung Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Samsung Group 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. Samsung Group 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 Samsung Group
What is a Organization for Samsung Group? Defining Organization in VRIO
Even if the Samsung Group 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 Samsung Group 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 |
---|---|---|---|---|---|
Global and Local Presence of Samsung Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Samsung Group but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Samsung Group retail strategy | Yes, Samsung Group has strong relationship with retailers and wholesalers | Yes, Samsung Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Samsung Group | 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 |
Opportunities in the E-Commerce Space for Samsung Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Samsung Group 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Samsung Group to thwart competition | Yes, IPR and other rights are rare and competition of Samsung Group will find it extremely difficult to copy | Risk of imitation is low but given the margins in the industry disruption chances are high | So far the firm has not utilized the full extent of its IPR & other properties | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Samsung Group products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Alignment of Activities with Samsung Group 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 |
Marketing Expertise within Samsung Group | 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 Samsung Group are often matched by competitors | Yes, Samsung Group is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Samsung Group 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 Samsung Group | To a large extent yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Samsung Group | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of Samsung Group in Comparison to the Competitors | Yes | No | Can be imitated by competitors but it will require big marketing budget | Yes, the firm has positioned its brands based on consumer behavior | Temporary Competitive Advantage |
Track Record of Leadership Team at Samsung Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Samsung Group Customer Network and Loyalty | Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as Samsung Group | Samsung Group is leveraging the customer loyalty to good effect | Provide Samsung Group medium term competitive advantage |
Customer Community of Samsung Group | Yes, as customers are co-creating products | Yes, the Samsung Group has able to build a special relationship with its customers | It is very difficult for Samsung Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Samsung Group customers community ecosystem | Providing Strong Competitive Advantage |
Samsung Group 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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