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China State Construction 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 China State Construction to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for China State Construction? Defining Valuable in VRIO
A resource or capability is considered valuable for China State Construction , if it allows the
China State Construction to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow China State Construction to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for China State Construction.
What are Rare Resources for China State Construction? Defining Rare in VRIO
In an industry that China State Construction operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. China State Construction require rare resources to compete in the industry. If China State Construction don’t have rare resources that are required to succeed in the industry then China State Construction won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide China State Construction competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for China State Construction? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to China State Construction 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. China State Construction 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 China State Construction
What is a Organization for China State Construction? Defining Organization in VRIO
Even if the China State Construction 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 China State Construction 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 |
---|---|---|---|---|---|
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with China State Construction dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Pricing Strategies of China State Construction | Yes, China State Construction has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide China State Construction with a Temporary Competitive Advantage |
Sales Force and Channel Management of China State Construction | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide China State Construction sustainable competitive advantage. Potential is certainly there. |
Marketing Expertise within China State Construction | 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 China State Construction are often matched by competitors | Yes, China State Construction is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of China State Construction | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that China State Construction operates in | No, none of the competitors so far has able to imitate this expertise | Yes, China State Construction is successful at it | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for China State Construction 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 |
Brand awareness of China State Construction products and services | Yes, the brand awareness of China State Construction products are high | Yes, China State Construction has one of the leading brand in the industry | No | China State Construction has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Brand Positioning of China State Construction 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 |
Customer Community of China State Construction | Yes, as customers are co-creating products | Yes, the China State Construction has able to build a special relationship with its customers | It is very difficult for China State Construction competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on China State Construction customers community ecosystem | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at China State Construction | 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 |
Position among Retailers and Wholesalers – China State Construction retail strategy | Yes, China State Construction has strong relationship with retailers and wholesalers | Yes, China State Construction has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for China State Construction - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and China State Construction 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
China State Construction 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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