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

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

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

What are Rare Resources for Youtube? Defining Rare in VRIO

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

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

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

What is a Organization for Youtube? Defining Organization in VRIO

Even if the Youtube 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 Youtube 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 Youtube products and services	Yes, the brand awareness of Youtube products are high	Yes, Youtube has one of the leading brand in the industry	No	Youtube has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Pricing Strategies of Youtube	Yes, Youtube has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Youtube with a Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Youtube dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Brand Positioning of Youtube 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
Position among Retailers and Wholesalers – Youtube retail strategy	Yes, Youtube has strong relationship with retailers and wholesalers	Yes, Youtube has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Customer Community of Youtube	Yes, as customers are co-creating products	Yes, the Youtube has able to build a special relationship with its customers	It is very difficult for Youtube competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Youtube customers community ecosystem	Providing Strong Competitive Advantage
Global and Local Presence of Youtube	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Youtube but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Track Record of Leadership Team at Youtube	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Youtube	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Youtube 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 Youtube	To a large extent yes	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Youtube 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
Marketing Expertise within Youtube	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 Youtube are often matched by competitors	Yes, Youtube is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Sales Force and Channel Management of Youtube	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Youtube sustainable competitive advantage. Potential is certainly there.
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

Youtube 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