Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Maersk 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 Maersk to do better resource allocation and build a defensible value and supply chain.
Order a Maersk VRIO / VRIN Analysis now
What is a Valuable Resource for Maersk? Defining Valuable in VRIO
A resource or capability is considered valuable for Maersk , if it allows the
Maersk to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Maersk to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Maersk.
What are Rare Resources for Maersk? Defining Rare in VRIO
In an industry that Maersk operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Maersk require rare resources to compete in the industry. If Maersk don’t have rare resources that are required to succeed in the industry then Maersk won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Maersk competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Maersk? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Maersk 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. Maersk 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 Maersk
What is a Organization for Maersk? Defining Organization in VRIO
Even if the Maersk 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 Maersk 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 Maersk to thwart competition | Yes, IPR and other rights are rare and competition of Maersk 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Maersk | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Marketing Expertise within Maersk | 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 Maersk are often matched by competitors | Yes, Maersk is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at Maersk | 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 |
Brand awareness of Maersk products and services | Yes, the brand awareness of Maersk products are high | Yes, Maersk has one of the leading brand in the industry | No | Maersk has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Maersk 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Maersk dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Maersk in delivering lower costs | No | Can be imitated by competitors of Maersk but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Alignment of Activities with Maersk 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 |
Supply Chain Network Flexibility of Maersk | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Maersk organizational structure and capabilities | Keeps the business running |
Pricing Strategies of Maersk | Yes, Maersk has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Maersk with a Temporary Competitive Advantage |
Track Record of Leadership Team at Maersk | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Maersk retail strategy | Yes, Maersk has strong relationship with retailers and wholesalers | Yes, Maersk has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Global and Local Presence of Maersk | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Maersk but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Maersk 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
- Omega VRIO / VRIN Analysis
- Fujifilm VRIO / VRIN Analysis
- John Deere VRIO / VRIN Analysis
- Virgin media VRIO / VRIN Analysis
- UniCredit VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Continental VRIO / VRIN Analysis
- Metro Cash and Carry VRIO / VRIN Analysis
- Sprite VRIO / VRIN Analysis
- Colgate VRIO / VRIN Analysis
- Nomura VRIO / VRIN Analysis