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CJ 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 CJ Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for CJ Group? Defining Valuable in VRIO
A resource or capability is considered valuable for CJ Group , if it allows the
CJ 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 CJ Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CJ Group.
What are Rare Resources for CJ Group? Defining Rare in VRIO
In an industry that CJ Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CJ Group require rare resources to compete in the industry. If CJ Group don’t have rare resources that are required to succeed in the industry then CJ Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CJ 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 CJ Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to CJ 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. CJ 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 CJ Group
What is a Organization for CJ Group? Defining Organization in VRIO
Even if the CJ 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 CJ 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 |
---|---|---|---|---|---|
Customer Community of CJ Group | Yes, as customers are co-creating products | Yes, the CJ Group has able to build a special relationship with its customers | It is very difficult for CJ Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on CJ Group customers community ecosystem | Providing Strong Competitive Advantage |
Track Record of Leadership Team at CJ Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Pricing Strategies of CJ Group | Yes, CJ Group has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide CJ Group with a Temporary Competitive Advantage |
Global and Local Presence of CJ Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of CJ Group 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 CJ Group | 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 CJ Group are often matched by competitors | Yes, CJ Group is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with CJ Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of CJ Group | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for CJ Group to thwart competition | Yes, IPR and other rights are rare and competition of CJ Group 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 |
Opportunities in the E-Commerce Space for CJ Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and CJ 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 |
Opportunities in the Adjacent Industries that CJ 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 |
Sales Force and Channel Management of CJ Group | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide CJ Group sustainable competitive advantage. Potential is certainly there. |
Successful Implementation of Digital Strategy at CJ Group | 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 |
Opportunities for Brand Extensions for CJ 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 |
CJ 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
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