Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
ABB 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 ABB to do better resource allocation and build a defensible value and supply chain.
Order a ABB VRIO / VRIN Analysis now
What is a Valuable Resource for ABB? Defining Valuable in VRIO
A resource or capability is considered valuable for ABB , if it allows the
ABB to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow ABB to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for ABB.
What are Rare Resources for ABB? Defining Rare in VRIO
In an industry that ABB operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. ABB require rare resources to compete in the industry. If ABB don’t have rare resources that are required to succeed in the industry then ABB won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide ABB competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for ABB? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to ABB 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. ABB 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 ABB
What is a Organization for ABB? Defining Organization in VRIO
Even if the ABB 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 ABB 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 |
---|---|---|---|---|---|
Pricing Strategies of ABB | Yes, ABB has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide ABB with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, ABB 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 ABB | To a large extent yes | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps ABB in delivering lower costs | No | Can be imitated by competitors of ABB but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Access to Cheap Capital for ABB | Yes, as a leading player in the industry and current macro economic conditions, ABB has access to cheap capital | No | Can be imitated by the competitors of ABB | Not been totally exploited | Not significant in creating competitive advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of ABB | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Marketing Expertise within ABB | 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 ABB are often matched by competitors | Yes, ABB is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Brand awareness of ABB products and services | Yes, the brand awareness of ABB products are high | Yes, ABB has one of the leading brand in the industry | No | ABB has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – ABB retail strategy | Yes, ABB has strong relationship with retailers and wholesalers | Yes, ABB 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 ABB | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of ABB 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 Adjacent Industries that ABB 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 |
Successful Implementation of Digital Strategy at ABB | 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 Positioning of ABB 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 |
Customer Community of ABB | Yes, as customers are co-creating products | Yes, the ABB has able to build a special relationship with its customers | It is very difficult for ABB competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on ABB customers community ecosystem | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of ABB | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by ABB organizational structure and capabilities | Keeps the business running |
ABB 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
- 3 Mobile VRIO / VRIN Analysis
- Neutrogena VRIO / VRIN Analysis
- Shinhan Financial Group VRIO / VRIN Analysis
- PICC VRIO / VRIN Analysis
- Purina VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- 21st Century Fox VRIO / VRIN Analysis
- STC VRIO / VRIN Analysis
- Nordea VRIO / VRIN Analysis
- National Australia Bank VRIO / VRIN Analysis
- PNC VRIO / VRIN Analysis