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Pall Mall 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 Pall Mall to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Pall Mall? Defining Valuable in VRIO
A resource or capability is considered valuable for Pall Mall , if it allows the
Pall Mall to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Pall Mall to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Pall Mall.
What are Rare Resources for Pall Mall? Defining Rare in VRIO
In an industry that Pall Mall operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Pall Mall require rare resources to compete in the industry. If Pall Mall don’t have rare resources that are required to succeed in the industry then Pall Mall won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Pall Mall competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Pall Mall? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Pall Mall 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. Pall Mall 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 Pall Mall
What is a Organization for Pall Mall? Defining Organization in VRIO
Even if the Pall Mall 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 Pall Mall 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 |
---|---|---|---|---|---|
Access to Cheap Capital for Pall Mall | Yes, as a leading player in the industry and current macro economic conditions, Pall Mall has access to cheap capital | No | Can be imitated by the competitors of Pall Mall | Not been totally exploited | Not significant in creating competitive advantage |
Sales Force and Channel Management of Pall Mall | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Pall Mall sustainable competitive advantage. Potential is certainly there. |
Successful Implementation of Digital Strategy at Pall Mall | 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 |
Global and Local Presence of Pall Mall | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Pall Mall but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Pall Mall retail strategy | Yes, Pall Mall has strong relationship with retailers and wholesalers | Yes, Pall Mall has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Pall Mall 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 Pall Mall | To a large extent yes | Providing Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Pall Mall operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Pall Mall is successful at it | Providing Strong Competitive Advantage |
Brand awareness of Pall Mall products and services | Yes, the brand awareness of Pall Mall products are high | Yes, Pall Mall has one of the leading brand in the industry | No | Pall Mall has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for Pall Mall - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Pall Mall 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 |
Pricing Strategies of Pall Mall | Yes, Pall Mall has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Pall Mall with a Temporary Competitive Advantage |
Customer Community of Pall Mall | Yes, as customers are co-creating products | Yes, the Pall Mall has able to build a special relationship with its customers | It is very difficult for Pall Mall competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Pall Mall customers community ecosystem | Providing Strong Competitive Advantage |
Financial Resources of Pall Mall | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Pall Mall has reasonably sound financial position | Pall Mall has relatively sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Pall Mall | 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 |
Track Record of Leadership Team at Pall Mall | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Pall Mall 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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