Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Engie 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 Engie to do better resource allocation and build a defensible value and supply chain.
Order a Engie VRIO / VRIN Analysis now
What is a Valuable Resource for Engie? Defining Valuable in VRIO
A resource or capability is considered valuable for Engie , if it allows the
Engie to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Engie to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Engie.
What are Rare Resources for Engie? Defining Rare in VRIO
In an industry that Engie operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Engie require rare resources to compete in the industry. If Engie don’t have rare resources that are required to succeed in the industry then Engie won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Engie competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Engie? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Engie 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. Engie 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 Engie
What is a Organization for Engie? Defining Organization in VRIO
Even if the Engie 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 Engie 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 |
---|---|---|---|---|---|
Ability to Attract Talent in Various Local & Global Markets | Yes, Engie 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 Engie | To a large extent yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Engie dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Engie in delivering lower costs | No | Can be imitated by competitors of Engie but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Alignment of Activities with Engie 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 |
Position among Retailers and Wholesalers – Engie retail strategy | Yes, Engie has strong relationship with retailers and wholesalers | Yes, Engie has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Engie 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 Positioning of Engie 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 |
Engie 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 Engie | Engie is leveraging the customer loyalty to good effect | Provide Engie medium term competitive advantage |
Sales Force and Channel Management of Engie | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Engie sustainable competitive advantage. Potential is certainly there. |
Opportunities in the Adjacent Industries that Engie can exploit & New Resources Required to Enter those Industries | Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
Access to Cheap Capital for Engie | Yes, as a leading player in the industry and current macro economic conditions, Engie has access to cheap capital | No | Can be imitated by the competitors of Engie | Not been totally exploited | Not significant in creating competitive advantage |
Successful Implementation of Digital Strategy at Engie | 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 |
Customer Community of Engie | Yes, as customers are co-creating products | Yes, the Engie has able to build a special relationship with its customers | It is very difficult for Engie competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Engie customers community ecosystem | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Engie 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Capital One VRIO / VRIN Analysis
- LG Group VRIO / VRIN Analysis
- Sam's Club VRIO / VRIN Analysis
- Ping An VRIO / VRIN Analysis
- Tesco VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Sky VRIO / VRIN Analysis
- Uber VRIO / VRIN Analysis
- Telstra VRIO / VRIN Analysis
- KPMG VRIO / VRIN Analysis
- Bank of Communications VRIO / VRIN Analysis