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CRRC 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 CRRC to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for CRRC? Defining Valuable in VRIO
A resource or capability is considered valuable for CRRC , if it allows the
CRRC to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow CRRC to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CRRC.
What are Rare Resources for CRRC? Defining Rare in VRIO
In an industry that CRRC operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CRRC require rare resources to compete in the industry. If CRRC don’t have rare resources that are required to succeed in the industry then CRRC won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CRRC competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for CRRC? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to CRRC 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. CRRC 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 CRRC
What is a Organization for CRRC? Defining Organization in VRIO
Even if the CRRC 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 CRRC 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 |
---|---|---|---|---|---|
Global and Local Presence of CRRC | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of CRRC but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Sales Force and Channel Management of CRRC | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide CRRC sustainable competitive advantage. Potential is certainly there. |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with CRRC dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Pricing Strategies of CRRC | Yes, CRRC has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide CRRC with a Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at CRRC | 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 |
Brand Positioning of CRRC 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 |
Opportunities in the E-Commerce Space for CRRC - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and CRRC 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 |
Customer Community of CRRC | Yes, as customers are co-creating products | Yes, the CRRC has able to build a special relationship with its customers | It is very difficult for CRRC competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on CRRC customers community ecosystem | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – CRRC retail strategy | Yes, CRRC has strong relationship with retailers and wholesalers | Yes, CRRC has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of CRRC | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of CRRC | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Opportunities in the Adjacent Industries that CRRC 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Financial Resources of CRRC | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | CRRC has reasonably sound financial position | CRRC has relatively sustainable Competitive Advantage |
CRRC 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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