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Bud Light 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 Bud Light to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Bud Light? Defining Valuable in VRIO
A resource or capability is considered valuable for Bud Light , if it allows the
Bud Light to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Bud Light to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Bud Light.
What are Rare Resources for Bud Light? Defining Rare in VRIO
In an industry that Bud Light operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Bud Light require rare resources to compete in the industry. If Bud Light don’t have rare resources that are required to succeed in the industry then Bud Light won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Bud Light competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Bud Light? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Bud Light 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. Bud Light 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 Bud Light
What is a Organization for Bud Light? Defining Organization in VRIO
Even if the Bud Light 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 Bud Light 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 awareness of Bud Light products and services | Yes, the brand awareness of Bud Light products are high | Yes, Bud Light has one of the leading brand in the industry | No | Bud Light has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Bud Light operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Bud Light is successful at it | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Bud Light to thwart competition | Yes, IPR and other rights are rare and competition of Bud Light 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 in the Adjacent Industries that Bud Light 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Bud Light | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Marketing Expertise within Bud Light | 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 Bud Light are often matched by competitors | Yes, Bud Light is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Customer Community of Bud Light | Yes, as customers are co-creating products | Yes, the Bud Light has able to build a special relationship with its customers | It is very difficult for Bud Light competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Bud Light customers community ecosystem | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Product Portfolio and Synergy among Various Product Lines of Bud Light | 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 |
Financial Resources of Bud Light | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Bud Light has reasonably sound financial position | Bud Light has relatively sustainable Competitive Advantage |
Opportunities for Brand Extensions for Bud Light 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Bud Light dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Leadership Team at Bud Light | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Sales Force and Channel Management of Bud Light | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Bud Light sustainable competitive advantage. Potential is certainly there. |
Bud Light 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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