Discovery Media 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 Discovery Media to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Discovery Media? Defining Valuable in VRIO

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

What are Rare Resources for Discovery Media? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Discovery Media? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Discovery Media 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. Discovery Media 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 Discovery Media

What is a Organization for Discovery Media? Defining Organization in VRIO

Even if the Discovery Media 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 Discovery Media 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
Global and Local Presence of Discovery Media	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Discovery Media but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Marketing Expertise within Discovery Media	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 Discovery Media are often matched by competitors	Yes, Discovery Media is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Discovery Media to thwart competition	Yes, IPR and other rights are rare and competition of Discovery Media 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Discovery Media in delivering lower costs	No	Can be imitated by competitors of Discovery Media but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities for Brand Extensions for Discovery Media 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
Discovery Media 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 Discovery Media	Discovery Media is leveraging the customer loyalty to good effect	Provide Discovery Media 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 Discovery Media operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Discovery Media is successful at it	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Alignment of Activities with Discovery Media 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
Successful Implementation of Digital Strategy at Discovery Media	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
Financial Resources of Discovery Media	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Discovery Media has reasonably sound financial position	Discovery Media has relatively sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Discovery Media 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 Discovery Media	To a large extent yes	Providing Strong Competitive Advantage
Brand Positioning of Discovery Media 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 Cheap Capital for Discovery Media	Yes, as a leading player in the industry and current macro economic conditions, Discovery Media has access to cheap capital	No	Can be imitated by the competitors of Discovery Media	Not been totally exploited	Not significant in creating competitive advantage

Discovery Media 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