Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
WeChat 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 WeChat to do better resource allocation and build a defensible value and supply chain.
Order a WeChat VRIO / VRIN Analysis now
What is a Valuable Resource for WeChat? Defining Valuable in VRIO
A resource or capability is considered valuable for WeChat , if it allows the
WeChat to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow WeChat to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for WeChat.
What are Rare Resources for WeChat? Defining Rare in VRIO
In an industry that WeChat operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. WeChat require rare resources to compete in the industry. If WeChat don’t have rare resources that are required to succeed in the industry then WeChat won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide WeChat competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for WeChat? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to WeChat 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. WeChat 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 WeChat
What is a Organization for WeChat? Defining Organization in VRIO
Even if the WeChat 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 WeChat 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 |
---|---|---|---|---|---|
Brand Positioning of WeChat 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 |
Track Record of Leadership Team at WeChat | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
WeChat Customer Network and Loyalty | Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as WeChat | WeChat is leveraging the customer loyalty to good effect | Provide WeChat medium term competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps WeChat in delivering lower costs | No | Can be imitated by competitors of WeChat but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of WeChat | 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 |
Access to Cheap Capital for WeChat | Yes, as a leading player in the industry and current macro economic conditions, WeChat has access to cheap capital | No | Can be imitated by the competitors of WeChat | Not been totally exploited | Not significant in creating competitive advantage |
Customer Community of WeChat | Yes, as customers are co-creating products | Yes, the WeChat has able to build a special relationship with its customers | It is very difficult for WeChat competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on WeChat customers community ecosystem | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for WeChat to thwart competition | Yes, IPR and other rights are rare and competition of WeChat 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 |
Opportunities for Brand Extensions for WeChat 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 |
Successful Implementation of Digital Strategy at WeChat | 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 |
Marketing Expertise within WeChat | 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 WeChat are often matched by competitors | Yes, WeChat is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, WeChat 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 WeChat | To a large extent yes | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of WeChat | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
WeChat 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Bridgestone VRIO / VRIN Analysis
- Red Bull VRIO / VRIN Analysis
- Statoil VRIO / VRIN Analysis
- LIC VRIO / VRIN Analysis
- Warner Bros. VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Pampers VRIO / VRIN Analysis
- Industrial Bank VRIO / VRIN Analysis
- Shanghai Pudong Development Bank VRIO / VRIN Analysis
- EE VRIO / VRIN Analysis
- Delta VRIO / VRIN Analysis