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Aviva 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 Aviva to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Aviva? Defining Valuable in VRIO
A resource or capability is considered valuable for Aviva , if it allows the
Aviva to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Aviva to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Aviva.
What are Rare Resources for Aviva? Defining Rare in VRIO
In an industry that Aviva operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Aviva require rare resources to compete in the industry. If Aviva don’t have rare resources that are required to succeed in the industry then Aviva won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Aviva competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Aviva? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Aviva 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. Aviva 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 Aviva
What is a Organization for Aviva? Defining Organization in VRIO
Even if the Aviva 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 Aviva 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 |
---|---|---|---|---|---|
Pricing Strategies of Aviva | Yes, Aviva has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Aviva with a Temporary Competitive Advantage |
Opportunities for Brand Extensions for Aviva 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Brand Positioning of Aviva 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 |
Brand awareness of Aviva products and services | Yes, the brand awareness of Aviva products are high | Yes, Aviva has one of the leading brand in the industry | No | Aviva has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Aviva | 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 Aviva are often matched by competitors | Yes, Aviva is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Customer Community of Aviva | Yes, as customers are co-creating products | Yes, the Aviva has able to build a special relationship with its customers | It is very difficult for Aviva competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Aviva customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Aviva 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 Aviva | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that Aviva 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 Aviva in delivering lower costs | No | Can be imitated by competitors of Aviva but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Aviva | 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 |
Sales Force and Channel Management of Aviva | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Aviva sustainable competitive advantage. Potential is certainly there. |
Successful Implementation of Digital Strategy at Aviva | 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 |
Supply Chain Network Flexibility of Aviva | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Aviva organizational structure and capabilities | Keeps the business running |
Aviva 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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