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Warner Bros. 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 Warner Bros. to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Warner Bros.? Defining Valuable in VRIO
A resource or capability is considered valuable for Warner Bros. , if it allows the
Warner Bros. to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Warner Bros. to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Warner Bros..
What are Rare Resources for Warner Bros.? Defining Rare in VRIO
In an industry that Warner Bros. operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Warner Bros. require rare resources to compete in the industry. If Warner Bros. don’t have rare resources that are required to succeed in the industry then Warner Bros. won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Warner Bros. competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Warner Bros.? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Warner Bros. 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. Warner Bros. 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 Warner Bros.
What is a Organization for Warner Bros.? Defining Organization in VRIO
Even if the Warner Bros. 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 Warner Bros. 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Warner Bros. - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Warner Bros. 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Warner Bros. operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Warner Bros. is successful at it | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Warner Bros. | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Warner Bros. | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Position among Retailers and Wholesalers – Warner Bros. retail strategy | Yes, Warner Bros. has strong relationship with retailers and wholesalers | Yes, Warner Bros. 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 Warner Bros. | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Warner Bros. but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Cheap Capital for Warner Bros. | Yes, as a leading player in the industry and current macro economic conditions, Warner Bros. has access to cheap capital | No | Can be imitated by the competitors of Warner Bros. | Not been totally exploited | Not significant in creating competitive advantage |
Alignment of Activities with Warner Bros. 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 |
Successful Implementation of Digital Strategy at Warner Bros. | 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 |
Opportunities in the Adjacent Industries that Warner Bros. 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 |
Marketing Expertise within Warner Bros. | 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 Warner Bros. are often matched by competitors | Yes, Warner Bros. is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Warner Bros. dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Warner Bros. | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Warner Bros. organizational structure and capabilities | Keeps the business running |
Product Portfolio and Synergy among Various Product Lines of Warner Bros. | 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 |
Warner Bros. 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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