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

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

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

What are Rare Resources for Amgen? Defining Rare in VRIO

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

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

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

What is a Organization for Amgen? Defining Organization in VRIO

Even if the Amgen 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 Amgen 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
Brand awareness of Amgen products and services	Yes, the brand awareness of Amgen products are high	Yes, Amgen has one of the leading brand in the industry	No	Amgen has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Sales Force and Channel Management of Amgen	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Amgen sustainable competitive advantage. Potential is certainly there.
Supply Chain Network Flexibility of Amgen	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Amgen organizational structure and capabilities	Keeps the business running
Opportunities in the E-Commerce Space for Amgen - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Amgen 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
Customer Community of Amgen	Yes, as customers are co-creating products	Yes, the Amgen has able to build a special relationship with its customers	It is very difficult for Amgen competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Amgen customers community ecosystem	Providing Strong Competitive Advantage
Track Record of Leadership Team at Amgen	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Access to Cheap Capital for Amgen	Yes, as a leading player in the industry and current macro economic conditions, Amgen has access to cheap capital	No	Can be imitated by the competitors of Amgen	Not been totally exploited	Not significant in creating competitive advantage
Product Portfolio and Synergy among Various Product Lines of Amgen	Yes, it is valuable in the industry given the various segmentations & consumer preferences.	Most of the competitors are trying to enter the lucrative segments	Can be imitated by the competitors	The firm has used it to good effect, details can be found in case exhibit	Provide short term competitive advantage but requires constant innovation to sustain
Ability to Attract Talent in Various Local & Global Markets	Yes, Amgen 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 Amgen	To a large extent yes	Providing Strong Competitive Advantage
Brand Positioning of Amgen 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 Amgen dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Amgen to thwart competition	Yes, IPR and other rights are rare and competition of Amgen 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Amgen in delivering lower costs	No	Can be imitated by competitors of Amgen but it is difficult	Yes	Medium to Long Term Competitive Advantage

Amgen 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