CPIC 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 CPIC to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for CPIC? Defining Valuable in VRIO

A resource or capability is considered valuable for CPIC , if it allows the CPIC to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow CPIC to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CPIC.

What are Rare Resources for CPIC? Defining Rare in VRIO

In an industry that CPIC operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CPIC require rare resources to compete in the industry. If CPIC don’t have rare resources that are required to succeed in the industry then CPIC won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CPIC competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for CPIC? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to CPIC 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. CPIC 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 CPIC

What is a Organization for CPIC? Defining Organization in VRIO

Even if the CPIC 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 CPIC 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
Position among Retailers and Wholesalers – CPIC retail strategy	Yes, CPIC has strong relationship with retailers and wholesalers	Yes, CPIC has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Financial Resources of CPIC	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	CPIC has reasonably sound financial position	CPIC has relatively sustainable Competitive Advantage
Customer Community of CPIC	Yes, as customers are co-creating products	Yes, the CPIC has able to build a special relationship with its customers	It is very difficult for CPIC competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on CPIC customers community ecosystem	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for CPIC - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and CPIC 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 for Brand Extensions for CPIC 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
Sales Force and Channel Management of CPIC	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide CPIC sustainable competitive advantage. Potential is certainly there.
Brand awareness of CPIC products and services	Yes, the brand awareness of CPIC products are high	Yes, CPIC has one of the leading brand in the industry	No	CPIC has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Supply Chain Network Flexibility of CPIC	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by CPIC organizational structure and capabilities	Keeps the business running
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with CPIC dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Pricing Strategies of CPIC	Yes, CPIC has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide CPIC with a Temporary Competitive Advantage
Alignment of Activities with CPIC 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps CPIC in delivering lower costs	No	Can be imitated by competitors of CPIC but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the Adjacent Industries that CPIC 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
Access to Cheap Capital for CPIC	Yes, as a leading player in the industry and current macro economic conditions, CPIC has access to cheap capital	No	Can be imitated by the competitors of CPIC	Not been totally exploited	Not significant in creating competitive advantage

CPIC 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