Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
SFR 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 SFR to do better resource allocation and build a defensible value and supply chain.
Order a SFR VRIO / VRIN Analysis now
What is a Valuable Resource for SFR? Defining Valuable in VRIO
A resource or capability is considered valuable for SFR , if it allows the
SFR to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow SFR to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for SFR.
What are Rare Resources for SFR? Defining Rare in VRIO
In an industry that SFR operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. SFR require rare resources to compete in the industry. If SFR don’t have rare resources that are required to succeed in the industry then SFR won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide SFR competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for SFR? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to SFR 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. SFR 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 SFR
What is a Organization for SFR? Defining Organization in VRIO
Even if the SFR 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 SFR 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of SFR | 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 |
SFR 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 SFR | SFR is leveraging the customer loyalty to good effect | Provide SFR medium term competitive advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that SFR operates in | No, none of the competitors so far has able to imitate this expertise | Yes, SFR is successful at it | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for SFR 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 |
Successful Implementation of Digital Strategy at SFR | 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 |
Alignment of Activities with SFR 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 |
Opportunities in the Adjacent Industries that SFR 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 |
Opportunities in the E-Commerce Space for SFR - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and SFR 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 |
Pricing Strategies of SFR | Yes, SFR has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide SFR with a Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for SFR to thwart competition | Yes, IPR and other rights are rare and competition of SFR 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 |
Customer Community of SFR | Yes, as customers are co-creating products | Yes, the SFR has able to build a special relationship with its customers | It is very difficult for SFR competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on SFR customers community ecosystem | Providing Strong Competitive Advantage |
Track Record of Leadership Team at SFR | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Marketing Expertise within SFR | 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 SFR are often matched by competitors | Yes, SFR is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Sales Force and Channel Management of SFR | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide SFR sustainable competitive advantage. Potential is certainly there. |
SFR 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
- Evergrande Real Estate VRIO / VRIN Analysis
- Gatorade VRIO / VRIN Analysis
- Subaru VRIO / VRIN Analysis
- Suzuki VRIO / VRIN Analysis
- Dove VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- ACE VRIO / VRIN Analysis
- Bank of America Merrill Lynch VRIO / VRIN Analysis
- Volvo VRIO / VRIN Analysis
- Discover VRIO / VRIN Analysis
- Tim Hortons VRIO / VRIN Analysis