Doosan (Group) 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 Doosan (Group) to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Doosan (Group)? Defining Valuable in VRIO

A resource or capability is considered valuable for Doosan (Group) , if it allows the Doosan (Group) to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow Doosan (Group) to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Doosan (Group).

What are Rare Resources for Doosan (Group)? Defining Rare in VRIO

In an industry that Doosan (Group) operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Doosan (Group) require rare resources to compete in the industry. If Doosan (Group) don’t have rare resources that are required to succeed in the industry then Doosan (Group) won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Doosan (Group) competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for Doosan (Group)? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Doosan (Group) 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. Doosan (Group) 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 Doosan (Group)

What is a Organization for Doosan (Group)? Defining Organization in VRIO

Even if the Doosan (Group) 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 Doosan (Group) 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
Supply Chain Network Flexibility of Doosan (Group)	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Doosan (Group) organizational structure and capabilities	Keeps the business running
Opportunities in the Adjacent Industries that Doosan (Group) 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
Brand Positioning of Doosan (Group) 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Doosan (Group) dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Financial Resources of Doosan (Group)	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Doosan (Group) has reasonably sound financial position	Doosan (Group) has relatively sustainable Competitive Advantage
Position among Retailers and Wholesalers – Doosan (Group) retail strategy	Yes, Doosan (Group) has strong relationship with retailers and wholesalers	Yes, Doosan (Group) has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand awareness of Doosan (Group) products and services	Yes, the brand awareness of Doosan (Group) products are high	Yes, Doosan (Group) has one of the leading brand in the industry	No	Doosan (Group) has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Doosan (Group) operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Doosan (Group) is successful at it	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Doosan (Group) 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
Sales Force and Channel Management of Doosan (Group)	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Doosan (Group) sustainable competitive advantage. Potential is certainly there.
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Doosan (Group)	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Opportunities in the E-Commerce Space for Doosan (Group) - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Doosan (Group) 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
Access to Cheap Capital for Doosan (Group)	Yes, as a leading player in the industry and current macro economic conditions, Doosan (Group) has access to cheap capital	No	Can be imitated by the competitors of Doosan (Group)	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Doosan (Group)	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage

Doosan (Group) 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