Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Porsche 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 Porsche to do better resource allocation and build a defensible value and supply chain.
Order a Porsche VRIO / VRIN Analysis now
What is a Valuable Resource for Porsche? Defining Valuable in VRIO
A resource or capability is considered valuable for Porsche , if it allows the
Porsche to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Porsche to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Porsche.
What are Rare Resources for Porsche? Defining Rare in VRIO
In an industry that Porsche operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Porsche require rare resources to compete in the industry. If Porsche don’t have rare resources that are required to succeed in the industry then Porsche won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Porsche competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Porsche? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Porsche 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. Porsche 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 Porsche
What is a Organization for Porsche? Defining Organization in VRIO
Even if the Porsche 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 Porsche 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 |
---|---|---|---|---|---|
Track Record of Leadership Team at Porsche | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Alignment of Activities with Porsche 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 |
Porsche 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 Porsche | Porsche is leveraging the customer loyalty to good effect | Provide Porsche medium term competitive advantage |
Brand awareness of Porsche products and services | Yes, the brand awareness of Porsche products are high | Yes, Porsche has one of the leading brand in the industry | No | Porsche has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Porsche | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Financial Resources of Porsche | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Porsche has reasonably sound financial position | Porsche has relatively sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Porsche | 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 |
Brand Positioning of Porsche 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Porsche dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Porsche retail strategy | Yes, Porsche has strong relationship with retailers and wholesalers | Yes, Porsche has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Porsche 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 |
Sales Force and Channel Management of Porsche | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Porsche sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Porsche to thwart competition | Yes, IPR and other rights are rare and competition of Porsche 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 |
Porsche 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
- Mazda VRIO / VRIN Analysis
- United VRIO / VRIN Analysis
- Budweiser VRIO / VRIN Analysis
- Lay's Potato Chips VRIO / VRIN Analysis
- Lego VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- BD VRIO / VRIN Analysis
- Unilever VRIO / VRIN Analysis
- Ferrari VRIO / VRIN Analysis
- Rogers VRIO / VRIN Analysis
- Bayer VRIO / VRIN Analysis