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

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

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

What are Rare Resources for Moutai? Defining Rare in VRIO

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

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

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

What is a Organization for Moutai? Defining Organization in VRIO

Even if the Moutai 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 Moutai 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 Adjacent Industries that Moutai 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
Opportunities in the E-Commerce Space for Moutai - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Moutai 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
Access to Cheap Capital for Moutai	Yes, as a leading player in the industry and current macro economic conditions, Moutai has access to cheap capital	No	Can be imitated by the competitors of Moutai	Not been totally exploited	Not significant in creating competitive advantage
Financial Resources of Moutai	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Moutai has reasonably sound financial position	Moutai has relatively sustainable Competitive Advantage
Position among Retailers and Wholesalers – Moutai retail strategy	Yes, Moutai has strong relationship with retailers and wholesalers	Yes, Moutai has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand Positioning of Moutai 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
Successful Implementation of Digital Strategy at Moutai	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
Brand awareness of Moutai products and services	Yes, the brand awareness of Moutai products are high	Yes, Moutai has one of the leading brand in the industry	No	Moutai has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Supply Chain Network Flexibility of Moutai	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Moutai organizational structure and capabilities	Keeps the business running
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Moutai operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Moutai is successful at it	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Moutai 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 Moutai	Moutai is leveraging the customer loyalty to good effect	Provide Moutai medium term competitive advantage
Marketing Expertise within Moutai	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 Moutai are often matched by competitors	Yes, Moutai is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Moutai	Not based on information provided in the case	Can Lead to Strong Competitive Advantage

Moutai 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