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Marlboro 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 Marlboro to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Marlboro? Defining Valuable in VRIO
A resource or capability is considered valuable for Marlboro , if it allows the
Marlboro to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Marlboro to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Marlboro.
What are Rare Resources for Marlboro? Defining Rare in VRIO
In an industry that Marlboro operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Marlboro require rare resources to compete in the industry. If Marlboro don’t have rare resources that are required to succeed in the industry then Marlboro won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Marlboro competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Marlboro? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Marlboro 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. Marlboro 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 Marlboro
What is a Organization for Marlboro? Defining Organization in VRIO
Even if the Marlboro 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 Marlboro 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Marlboro - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Marlboro 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Marlboro in delivering lower costs | No | Can be imitated by competitors of Marlboro but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Marlboro to thwart competition | Yes, IPR and other rights are rare and competition of Marlboro 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 |
Sales Force and Channel Management of Marlboro | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Marlboro sustainable competitive advantage. Potential is certainly there. |
Successful Implementation of Digital Strategy at Marlboro | 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 |
Track Record of Leadership Team at Marlboro | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Marlboro retail strategy | Yes, Marlboro has strong relationship with retailers and wholesalers | Yes, Marlboro has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Marlboro 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 Marlboro | To a large extent yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Marlboro | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Marlboro organizational structure and capabilities | Keeps the business running |
Financial Resources of Marlboro | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Marlboro has reasonably sound financial position | Marlboro has relatively sustainable Competitive Advantage |
Brand Positioning of Marlboro 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 |
Global and Local Presence of Marlboro | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Marlboro but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Marlboro | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Marlboro 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 Marlboro | Marlboro is leveraging the customer loyalty to good effect | Provide Marlboro medium term competitive advantage |
Marlboro 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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