Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Mazda 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 Mazda to do better resource allocation and build a defensible value and supply chain.
Order a Mazda VRIO / VRIN Analysis now
What is a Valuable Resource for Mazda? Defining Valuable in VRIO
A resource or capability is considered valuable for Mazda , if it allows the
Mazda to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Mazda to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Mazda.
What are Rare Resources for Mazda? Defining Rare in VRIO
In an industry that Mazda operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Mazda require rare resources to compete in the industry. If Mazda don’t have rare resources that are required to succeed in the industry then Mazda won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Mazda competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Mazda? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Mazda 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. Mazda 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 Mazda
What is a Organization for Mazda? Defining Organization in VRIO
Even if the Mazda 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 Mazda 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 |
---|---|---|---|---|---|
Customer Community of Mazda | Yes, as customers are co-creating products | Yes, the Mazda has able to build a special relationship with its customers | It is very difficult for Mazda competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Mazda customers community ecosystem | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Mazda to thwart competition | Yes, IPR and other rights are rare and competition of Mazda 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Mazda | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Position among Retailers and Wholesalers – Mazda retail strategy | Yes, Mazda has strong relationship with retailers and wholesalers | Yes, Mazda has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Marketing Expertise within Mazda | 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 Mazda are often matched by competitors | Yes, Mazda is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at Mazda | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Mazda 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 Cheap Capital for Mazda | Yes, as a leading player in the industry and current macro economic conditions, Mazda has access to cheap capital | No | Can be imitated by the competitors of Mazda | Not been totally exploited | Not significant in creating competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Mazda in delivering lower costs | No | Can be imitated by competitors of Mazda but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Sales Force and Channel Management of Mazda | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Mazda sustainable competitive advantage. Potential is certainly there. |
Mazda Customer Network and Loyalty | Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as Mazda | Mazda is leveraging the customer loyalty to good effect | Provide Mazda medium term competitive advantage |
Brand Positioning of Mazda 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 Mazda | Yes, Mazda has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Mazda with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Mazda 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 Mazda | To a large extent yes | Providing Strong Competitive Advantage |
Mazda 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- United VRIO / VRIN Analysis
- Budweiser VRIO / VRIN Analysis
- Lay's Potato Chips VRIO / VRIN Analysis
- Lego VRIO / VRIN Analysis
- CNOOC VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Porsche VRIO / VRIN Analysis
- BD VRIO / VRIN Analysis
- Unilever VRIO / VRIN Analysis
- Ferrari VRIO / VRIN Analysis
- Rogers VRIO / VRIN Analysis