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EMC2 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 EMC2 to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for EMC2? Defining Valuable in VRIO
A resource or capability is considered valuable for EMC2 , if it allows the
EMC2 to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow EMC2 to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for EMC2.
What are Rare Resources for EMC2? Defining Rare in VRIO
In an industry that EMC2 operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. EMC2 require rare resources to compete in the industry. If EMC2 don’t have rare resources that are required to succeed in the industry then EMC2 won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide EMC2 competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for EMC2? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to EMC2 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. EMC2 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 EMC2
What is a Organization for EMC2? Defining Organization in VRIO
Even if the EMC2 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 EMC2 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 |
---|---|---|---|---|---|
Opportunities for Brand Extensions for EMC2 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 |
Opportunities in the Adjacent Industries that EMC2 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 |
Global and Local Presence of EMC2 | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of EMC2 but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps EMC2 in delivering lower costs | No | Can be imitated by competitors of EMC2 but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Sales Force and Channel Management of EMC2 | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide EMC2 sustainable competitive advantage. Potential is certainly there. |
Access to Cheap Capital for EMC2 | Yes, as a leading player in the industry and current macro economic conditions, EMC2 has access to cheap capital | No | Can be imitated by the competitors of EMC2 | Not been totally exploited | Not significant in creating competitive advantage |
Brand Positioning of EMC2 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of EMC2 | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Leadership Team at EMC2 | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Pricing Strategies of EMC2 | Yes, EMC2 has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide EMC2 with a Temporary Competitive Advantage |
Marketing Expertise within EMC2 | 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 EMC2 are often matched by competitors | Yes, EMC2 is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that EMC2 operates in | No, none of the competitors so far has able to imitate this expertise | Yes, EMC2 is successful at it | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for EMC2 to thwart competition | Yes, IPR and other rights are rare and competition of EMC2 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 |
Customer Community of EMC2 | Yes, as customers are co-creating products | Yes, the EMC2 has able to build a special relationship with its customers | It is very difficult for EMC2 competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on EMC2 customers community ecosystem | Providing Strong Competitive Advantage |
EMC2 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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