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Chevrolet 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 Chevrolet to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Chevrolet? Defining Valuable in VRIO
A resource or capability is considered valuable for Chevrolet , if it allows the
Chevrolet to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Chevrolet to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Chevrolet.
What are Rare Resources for Chevrolet? Defining Rare in VRIO
In an industry that Chevrolet operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Chevrolet require rare resources to compete in the industry. If Chevrolet don’t have rare resources that are required to succeed in the industry then Chevrolet won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Chevrolet competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Chevrolet? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Chevrolet 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. Chevrolet 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 Chevrolet
What is a Organization for Chevrolet? Defining Organization in VRIO
Even if the Chevrolet 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 Chevrolet 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Chevrolet to thwart competition | Yes, IPR and other rights are rare and competition of Chevrolet 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 |
Successful Implementation of Digital Strategy at Chevrolet | 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 |
Alignment of Activities with Chevrolet 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Chevrolet dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Chevrolet 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Chevrolet in delivering lower costs | No | Can be imitated by competitors of Chevrolet but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Chevrolet products and services | Yes, the brand awareness of Chevrolet products are high | Yes, Chevrolet has one of the leading brand in the industry | No | Chevrolet has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Chevrolet | 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 Chevrolet are often matched by competitors | Yes, Chevrolet is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at Chevrolet | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Chevrolet | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Chevrolet but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Chevrolet - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Chevrolet 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 |
Brand Positioning of Chevrolet 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Chevrolet 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 Chevrolet | To a large extent yes | Providing Strong Competitive Advantage |
Chevrolet 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 Chevrolet | Chevrolet is leveraging the customer loyalty to good effect | Provide Chevrolet medium term competitive advantage |
Chevrolet 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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