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Bridgestone 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 Bridgestone to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Bridgestone? Defining Valuable in VRIO
A resource or capability is considered valuable for Bridgestone , if it allows the
Bridgestone to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Bridgestone to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Bridgestone.
What are Rare Resources for Bridgestone? Defining Rare in VRIO
In an industry that Bridgestone operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Bridgestone require rare resources to compete in the industry. If Bridgestone don’t have rare resources that are required to succeed in the industry then Bridgestone won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Bridgestone competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Bridgestone? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Bridgestone 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. Bridgestone 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 Bridgestone
What is a Organization for Bridgestone? Defining Organization in VRIO
Even if the Bridgestone 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 Bridgestone 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 |
---|---|---|---|---|---|
Marketing Expertise within Bridgestone | 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 Bridgestone are often matched by competitors | Yes, Bridgestone is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Sales Force and Channel Management of Bridgestone | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Bridgestone sustainable competitive advantage. Potential is certainly there. |
Pricing Strategies of Bridgestone | Yes, Bridgestone has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Bridgestone with a Temporary Competitive Advantage |
Track Record of Leadership Team at Bridgestone | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Bridgestone | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Bridgestone but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Bridgestone | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Bridgestone - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Bridgestone 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 Bridgestone 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 |
Product Portfolio and Synergy among Various Product Lines of Bridgestone | 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 |
Position among Retailers and Wholesalers – Bridgestone retail strategy | Yes, Bridgestone has strong relationship with retailers and wholesalers | Yes, Bridgestone has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Access to Cheap Capital for Bridgestone | Yes, as a leading player in the industry and current macro economic conditions, Bridgestone has access to cheap capital | No | Can be imitated by the competitors of Bridgestone | Not been totally exploited | Not significant in creating competitive advantage |
Brand awareness of Bridgestone products and services | Yes, the brand awareness of Bridgestone products are high | Yes, Bridgestone has one of the leading brand in the industry | No | Bridgestone has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Bridgestone 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 |
Alignment of Activities with Bridgestone 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 |
Bridgestone 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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