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

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

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

What are Rare Resources for Garnier? Defining Rare in VRIO

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

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

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

What is a Organization for Garnier? Defining Organization in VRIO

Even if the Garnier 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 Garnier 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Garnier 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 Garnier	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Garnier to thwart competition	Yes, IPR and other rights are rare and competition of Garnier 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
Access to Cheap Capital for Garnier	Yes, as a leading player in the industry and current macro economic conditions, Garnier has access to cheap capital	No	Can be imitated by the competitors of Garnier	Not been totally exploited	Not significant in creating competitive advantage
Brand Positioning of Garnier 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
Pricing Strategies of Garnier	Yes, Garnier has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Garnier with a Temporary Competitive Advantage
Alignment of Activities with Garnier 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
Brand awareness of Garnier products and services	Yes, the brand awareness of Garnier products are high	Yes, Garnier has one of the leading brand in the industry	No	Garnier has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Marketing Expertise within Garnier	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 Garnier are often matched by competitors	Yes, Garnier is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Garnier in delivering lower costs	No	Can be imitated by competitors of Garnier but it is difficult	Yes	Medium to Long Term Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Garnier operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Garnier is successful at it	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Garnier	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Sales Force and Channel Management of Garnier	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Garnier sustainable competitive advantage. Potential is certainly there.
Global and Local Presence of Garnier	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Garnier but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Garnier dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage

Garnier 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