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KPN 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 KPN to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for KPN? Defining Valuable in VRIO
A resource or capability is considered valuable for KPN , if it allows the
KPN to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow KPN to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for KPN.
What are Rare Resources for KPN? Defining Rare in VRIO
In an industry that KPN operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. KPN require rare resources to compete in the industry. If KPN don’t have rare resources that are required to succeed in the industry then KPN won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide KPN competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for KPN? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to KPN 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. KPN 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 KPN
What is a Organization for KPN? Defining Organization in VRIO
Even if the KPN 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 KPN 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 |
---|---|---|---|---|---|
Alignment of Activities with KPN 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 |
Brand Positioning of KPN 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, KPN 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 KPN | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – KPN retail strategy | Yes, KPN has strong relationship with retailers and wholesalers | Yes, KPN has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps KPN in delivering lower costs | No | Can be imitated by competitors of KPN but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Pricing Strategies of KPN | Yes, KPN has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide KPN with a Temporary Competitive Advantage |
Access to Cheap Capital for KPN | Yes, as a leading player in the industry and current macro economic conditions, KPN has access to cheap capital | No | Can be imitated by the competitors of KPN | Not been totally exploited | Not significant in creating competitive advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with KPN dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of KPN | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by KPN organizational structure and capabilities | Keeps the business running |
Opportunities in the Adjacent Industries that KPN 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 |
Customer Community of KPN | Yes, as customers are co-creating products | Yes, the KPN has able to build a special relationship with its customers | It is very difficult for KPN competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on KPN customers community ecosystem | Providing Strong Competitive Advantage |
Brand awareness of KPN products and services | Yes, the brand awareness of KPN products are high | Yes, KPN has one of the leading brand in the industry | No | KPN has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for KPN - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and KPN 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 |
KPN 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 KPN | KPN is leveraging the customer loyalty to good effect | Provide KPN medium term competitive advantage |
KPN 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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