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Dove 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 Dove to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Dove? Defining Valuable in VRIO
A resource or capability is considered valuable for Dove , if it allows the
Dove to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Dove to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Dove.
What are Rare Resources for Dove? Defining Rare in VRIO
In an industry that Dove operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Dove require rare resources to compete in the industry. If Dove don’t have rare resources that are required to succeed in the industry then Dove won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Dove competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Dove? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Dove 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. Dove 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 Dove
What is a Organization for Dove? Defining Organization in VRIO
Even if the Dove 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 Dove 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 |
---|---|---|---|---|---|
Marketing Expertise within Dove | 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 Dove are often matched by competitors | Yes, Dove is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Dove to thwart competition | Yes, IPR and other rights are rare and competition of Dove 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 |
Dove 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 Dove | Dove is leveraging the customer loyalty to good effect | Provide Dove medium term competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Dove in delivering lower costs | No | Can be imitated by competitors of Dove but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Dove | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand awareness of Dove products and services | Yes, the brand awareness of Dove products are high | Yes, Dove has one of the leading brand in the industry | No | Dove has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Financial Resources of Dove | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Dove has reasonably sound financial position | Dove has relatively sustainable Competitive Advantage |
Global and Local Presence of Dove | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Dove but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Pricing Strategies of Dove | Yes, Dove has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Dove with a Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Alignment of Activities with Dove 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Dove 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 Dove | To a large extent yes | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Dove | 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Dove dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Dove 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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