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Daiwa House Industry 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 Daiwa House Industry to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Daiwa House Industry? Defining Valuable in VRIO
A resource or capability is considered valuable for Daiwa House Industry , if it allows the
Daiwa House Industry to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Daiwa House Industry to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Daiwa House Industry.
What are Rare Resources for Daiwa House Industry? Defining Rare in VRIO
In an industry that Daiwa House Industry operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Daiwa House Industry require rare resources to compete in the industry. If Daiwa House Industry don’t have rare resources that are required to succeed in the industry then Daiwa House Industry won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Daiwa House Industry competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Daiwa House Industry? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Daiwa House Industry 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. Daiwa House Industry 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 Daiwa House Industry
What is a Organization for Daiwa House Industry? Defining Organization in VRIO
Even if the Daiwa House Industry 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 Daiwa House Industry 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 |
---|---|---|---|---|---|
Supply Chain Network Flexibility of Daiwa House Industry | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Daiwa House Industry organizational structure and capabilities | Keeps the business running |
Global and Local Presence of Daiwa House Industry | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Daiwa House Industry but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Daiwa House Industry | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Daiwa House Industry to thwart competition | Yes, IPR and other rights are rare and competition of Daiwa House Industry 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Daiwa House Industry operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Daiwa House Industry is successful at it | Providing Strong Competitive Advantage |
Marketing Expertise within Daiwa House Industry | 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 Daiwa House Industry are often matched by competitors | Yes, Daiwa House Industry is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Daiwa House Industry 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 Daiwa House Industry | To a large extent yes | Providing Strong Competitive Advantage |
Alignment of Activities with Daiwa House Industry 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 |
Access to Cheap Capital for Daiwa House Industry | Yes, as a leading player in the industry and current macro economic conditions, Daiwa House Industry has access to cheap capital | No | Can be imitated by the competitors of Daiwa House Industry | Not been totally exploited | Not significant in creating competitive advantage |
Opportunities in the E-Commerce Space for Daiwa House Industry - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Daiwa House Industry 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 |
Brand awareness of Daiwa House Industry products and services | Yes, the brand awareness of Daiwa House Industry products are high | Yes, Daiwa House Industry has one of the leading brand in the industry | No | Daiwa House Industry has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Daiwa House Industry 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 |
Position among Retailers and Wholesalers – Daiwa House Industry retail strategy | Yes, Daiwa House Industry has strong relationship with retailers and wholesalers | Yes, Daiwa House Industry has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Financial Resources of Daiwa House Industry | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Daiwa House Industry has reasonably sound financial position | Daiwa House Industry has relatively sustainable Competitive Advantage |
Daiwa House Industry 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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