Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Dai-Ichi Life 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 Dai-Ichi Life to do better resource allocation and build a defensible value and supply chain.
Order a Dai-Ichi Life VRIO / VRIN Analysis now
What is a Valuable Resource for Dai-Ichi Life? Defining Valuable in VRIO
A resource or capability is considered valuable for Dai-Ichi Life , if it allows the
Dai-Ichi Life to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Dai-Ichi Life to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Dai-Ichi Life.
What are Rare Resources for Dai-Ichi Life? Defining Rare in VRIO
In an industry that Dai-Ichi Life operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Dai-Ichi Life require rare resources to compete in the industry. If Dai-Ichi Life don’t have rare resources that are required to succeed in the industry then Dai-Ichi Life won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Dai-Ichi Life competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Dai-Ichi Life? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Dai-Ichi Life 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. Dai-Ichi Life 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 Dai-Ichi Life
What is a Organization for Dai-Ichi Life? Defining Organization in VRIO
Even if the Dai-Ichi Life 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 Dai-Ichi Life 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of Dai-Ichi Life | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Dai-Ichi Life sustainable competitive advantage. Potential is certainly there. |
Financial Resources of Dai-Ichi Life | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Dai-Ichi Life has reasonably sound financial position | Dai-Ichi Life has relatively sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Dai-Ichi Life retail strategy | Yes, Dai-Ichi Life has strong relationship with retailers and wholesalers | Yes, Dai-Ichi Life has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Global and Local Presence of Dai-Ichi Life | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Dai-Ichi Life 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 Dai-Ichi Life - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Dai-Ichi Life 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 |
Opportunities in the Adjacent Industries that Dai-Ichi Life 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 |
Product Portfolio and Synergy among Various Product Lines of Dai-Ichi Life | 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Dai-Ichi Life in delivering lower costs | No | Can be imitated by competitors of Dai-Ichi Life but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Supply Chain Network Flexibility of Dai-Ichi Life | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Dai-Ichi Life organizational structure and capabilities | Keeps the business running |
Access to Cheap Capital for Dai-Ichi Life | Yes, as a leading player in the industry and current macro economic conditions, Dai-Ichi Life has access to cheap capital | No | Can be imitated by the competitors of Dai-Ichi Life | Not been totally exploited | Not significant in creating competitive advantage |
Customer Community of Dai-Ichi Life | Yes, as customers are co-creating products | Yes, the Dai-Ichi Life has able to build a special relationship with its customers | It is very difficult for Dai-Ichi Life competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Dai-Ichi Life customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Dai-Ichi Life 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Dai-Ichi Life to thwart competition | Yes, IPR and other rights are rare and competition of Dai-Ichi Life 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 |
Dai-Ichi Life 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 Dai-Ichi Life | Dai-Ichi Life is leveraging the customer loyalty to good effect | Provide Dai-Ichi Life medium term competitive advantage |
Dai-Ichi Life 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
- Commonwealth Bank VRIO / VRIN Analysis
- Gillette VRIO / VRIN Analysis
- Soci
t G n rale VRIO / VRIN Analysis - Kellogg's VRIO / VRIN Analysis
- Credit Suisse VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- China CITIC Bank VRIO / VRIN Analysis
- adidas VRIO / VRIN Analysis
- Marubeni VRIO / VRIN Analysis
- Pall Mall VRIO / VRIN Analysis
- BBC VRIO / VRIN Analysis