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JR 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 JR to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for JR? Defining Valuable in VRIO
A resource or capability is considered valuable for JR , if it allows the
JR to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow JR to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for JR.
What are Rare Resources for JR? Defining Rare in VRIO
In an industry that JR operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. JR require rare resources to compete in the industry. If JR don’t have rare resources that are required to succeed in the industry then JR won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide JR competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for JR? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to JR 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. JR 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 JR
What is a Organization for JR? Defining Organization in VRIO
Even if the JR 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 JR 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of JR | Yes, it is valuable in the industry given the various segmentations & consumer preferences. | Most of the competitors are trying to enter the lucrative segments | Can be imitated by the competitors | The firm has used it to good effect, details can be found in case exhibit | Provide short term competitive advantage but requires constant innovation to sustain |
Pricing Strategies of JR | Yes, JR has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide JR with a Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Successful Implementation of Digital Strategy at JR | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of JR | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, JR 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 JR | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that JR 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 |
Position among Retailers and Wholesalers – JR retail strategy | Yes, JR has strong relationship with retailers and wholesalers | Yes, JR has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of JR | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide JR sustainable competitive advantage. Potential is certainly there. |
Opportunities for Brand Extensions for JR 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 E-Commerce Space for JR - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and JR 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 |
Access to Cheap Capital for JR | Yes, as a leading player in the industry and current macro economic conditions, JR has access to cheap capital | No | Can be imitated by the competitors of JR | Not been totally exploited | Not significant in creating competitive advantage |
Financial Resources of JR | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | JR has reasonably sound financial position | JR has relatively sustainable Competitive Advantage |
Alignment of Activities with JR 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 |
JR 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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