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China Vanke 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 China Vanke to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for China Vanke? Defining Valuable in VRIO
A resource or capability is considered valuable for China Vanke , if it allows the
China Vanke to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow China Vanke to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for China Vanke.
What are Rare Resources for China Vanke? Defining Rare in VRIO
In an industry that China Vanke operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. China Vanke require rare resources to compete in the industry. If China Vanke don’t have rare resources that are required to succeed in the industry then China Vanke won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide China Vanke competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for China Vanke? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to China Vanke 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. China Vanke 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 China Vanke
What is a Organization for China Vanke? Defining Organization in VRIO
Even if the China Vanke 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 China Vanke 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 – China Vanke retail strategy | Yes, China Vanke has strong relationship with retailers and wholesalers | Yes, China Vanke has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Alignment of Activities with China Vanke 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 |
Customer Community of China Vanke | Yes, as customers are co-creating products | Yes, the China Vanke has able to build a special relationship with its customers | It is very difficult for China Vanke competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on China Vanke customers community ecosystem | Providing Strong Competitive Advantage |
Global and Local Presence of China Vanke | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of China Vanke 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 China Vanke - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and China Vanke 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 |
Brand Positioning of China Vanke 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for China Vanke to thwart competition | Yes, IPR and other rights are rare and competition of China Vanke 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Successful Implementation of Digital Strategy at China Vanke | 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 China Vanke | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by China Vanke organizational structure and capabilities | Keeps the business running |
Brand awareness of China Vanke products and services | Yes, the brand awareness of China Vanke products are high | Yes, China Vanke has one of the leading brand in the industry | No | China Vanke has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that China Vanke 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 |
Financial Resources of China Vanke | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | China Vanke has reasonably sound financial position | China Vanke has relatively sustainable Competitive Advantage |
Pricing Strategies of China Vanke | Yes, China Vanke has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide China Vanke with a Temporary Competitive Advantage |
China Vanke 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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