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Discover 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 Discover to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Discover? Defining Valuable in VRIO
A resource or capability is considered valuable for Discover , if it allows the
Discover to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Discover to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Discover.
What are Rare Resources for Discover? Defining Rare in VRIO
In an industry that Discover operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Discover require rare resources to compete in the industry. If Discover don’t have rare resources that are required to succeed in the industry then Discover won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Discover competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Discover? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Discover 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. Discover 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 Discover
What is a Organization for Discover? Defining Organization in VRIO
Even if the Discover 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 Discover 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Discover to thwart competition | Yes, IPR and other rights are rare and competition of Discover 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Ability to Attract Talent in Various Local & Global Markets | Yes, Discover 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 Discover | To a large extent yes | Providing Strong Competitive Advantage |
Pricing Strategies of Discover | Yes, Discover has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Discover with a Temporary Competitive Advantage |
Alignment of Activities with Discover 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 |
Position among Retailers and Wholesalers – Discover retail strategy | Yes, Discover has strong relationship with retailers and wholesalers | Yes, Discover has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Sales Force and Channel Management of Discover | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Discover sustainable competitive advantage. Potential is certainly there. |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Discover in delivering lower costs | No | Can be imitated by competitors of Discover but it is difficult | Yes | Medium to Long 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 Discover operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Discover is successful at it | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Discover | 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 Discover dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Financial Resources of Discover | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Discover has reasonably sound financial position | Discover has relatively sustainable Competitive Advantage |
Brand Positioning of Discover 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 |
Customer Community of Discover | Yes, as customers are co-creating products | Yes, the Discover has able to build a special relationship with its customers | It is very difficult for Discover competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Discover customers community ecosystem | Providing Strong Competitive Advantage |
Discover 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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