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Mobil 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 Mobil to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Mobil? Defining Valuable in VRIO
A resource or capability is considered valuable for Mobil , if it allows the
Mobil to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Mobil to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Mobil.
What are Rare Resources for Mobil? Defining Rare in VRIO
In an industry that Mobil operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Mobil require rare resources to compete in the industry. If Mobil don’t have rare resources that are required to succeed in the industry then Mobil won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Mobil competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Mobil? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Mobil 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. Mobil 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 Mobil
What is a Organization for Mobil? Defining Organization in VRIO
Even if the Mobil 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 Mobil 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 |
---|---|---|---|---|---|
Distribution and Logistics Costs Competitiveness | Yes, as it helps Mobil in delivering lower costs | No | Can be imitated by competitors of Mobil but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities in the E-Commerce Space for Mobil - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Mobil 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 |
Alignment of Activities with Mobil 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 |
Track Record of Leadership Team at Mobil | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Brand awareness of Mobil products and services | Yes, the brand awareness of Mobil products are high | Yes, Mobil has one of the leading brand in the industry | No | Mobil has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Mobil | 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 Mobil are often matched by competitors | Yes, Mobil is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Financial Resources of Mobil | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Mobil has reasonably sound financial position | Mobil has relatively sustainable Competitive Advantage |
Customer Community of Mobil | Yes, as customers are co-creating products | Yes, the Mobil has able to build a special relationship with its customers | It is very difficult for Mobil competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Mobil customers community ecosystem | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Mobil | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Mobil organizational structure and capabilities | Keeps the business running |
Opportunities for Brand Extensions for Mobil 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 |
Pricing Strategies of Mobil | Yes, Mobil has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Mobil with a Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Sales Force and Channel Management of Mobil | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Mobil sustainable competitive advantage. Potential is certainly there. |
Brand Positioning of Mobil 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 |
Mobil 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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