General Electric 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 General Electric to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for General Electric? Defining Valuable in VRIO

A resource or capability is considered valuable for General Electric , if it allows the General Electric to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow General Electric to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for General Electric.

What are Rare Resources for General Electric? Defining Rare in VRIO

In an industry that General Electric operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. General Electric require rare resources to compete in the industry. If General Electric don’t have rare resources that are required to succeed in the industry then General Electric won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide General Electric competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for General Electric? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to General Electric 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. General Electric 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 General Electric

What is a Organization for General Electric? Defining Organization in VRIO

Even if the General Electric 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 General Electric 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 for Brand Extensions for General Electric 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
Opportunities in the Adjacent Industries that General Electric 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
Pricing Strategies of General Electric	Yes, General Electric has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide General Electric with a Temporary Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for General Electric to thwart competition	Yes, IPR and other rights are rare and competition of General Electric 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
Track Record of Leadership Team at General Electric	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at General Electric	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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that General Electric operates in	No, none of the competitors so far has able to imitate this expertise	Yes, General Electric is successful at it	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps General Electric in delivering lower costs	No	Can be imitated by competitors of General Electric but it is difficult	Yes	Medium to Long Term Competitive Advantage
Supply Chain Network Flexibility of General Electric	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by General Electric organizational structure and capabilities	Keeps the business running
Alignment of Activities with General Electric 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
Brand awareness of General Electric products and services	Yes, the brand awareness of General Electric products are high	Yes, General Electric has one of the leading brand in the industry	No	General Electric has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Customer Community of General Electric	Yes, as customers are co-creating products	Yes, the General Electric has able to build a special relationship with its customers	It is very difficult for General Electric competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on General Electric customers community ecosystem	Providing Strong Competitive Advantage
Access to Cheap Capital for General Electric	Yes, as a leading player in the industry and current macro economic conditions, General Electric has access to cheap capital	No	Can be imitated by the competitors of General Electric	Not been totally exploited	Not significant in creating competitive advantage
Position among Retailers and Wholesalers – General Electric retail strategy	Yes, General Electric has strong relationship with retailers and wholesalers	Yes, General Electric has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage

General Electric 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