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Spectrum 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 Spectrum to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Spectrum? Defining Valuable in VRIO
A resource or capability is considered valuable for Spectrum , if it allows the
Spectrum to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Spectrum to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Spectrum.
What are Rare Resources for Spectrum? Defining Rare in VRIO
In an industry that Spectrum operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Spectrum require rare resources to compete in the industry. If Spectrum don’t have rare resources that are required to succeed in the industry then Spectrum won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Spectrum competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Spectrum? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Spectrum 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. Spectrum 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 Spectrum
What is a Organization for Spectrum? Defining Organization in VRIO
Even if the Spectrum 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 Spectrum 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 |
---|---|---|---|---|---|
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Spectrum operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Spectrum is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Spectrum 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 |
Opportunities in the Adjacent Industries that Spectrum 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 |
Access to Cheap Capital for Spectrum | Yes, as a leading player in the industry and current macro economic conditions, Spectrum has access to cheap capital | No | Can be imitated by the competitors of Spectrum | Not been totally exploited | Not significant in creating competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Spectrum in delivering lower costs | No | Can be imitated by competitors of Spectrum but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Pricing Strategies of Spectrum | Yes, Spectrum has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Spectrum with a Temporary Competitive Advantage |
Alignment of Activities with Spectrum 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 |
Position among Retailers and Wholesalers – Spectrum retail strategy | Yes, Spectrum has strong relationship with retailers and wholesalers | Yes, Spectrum has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Spectrum | 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 Spectrum products and services | Yes, the brand awareness of Spectrum products are high | Yes, Spectrum has one of the leading brand in the industry | No | Spectrum has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Spectrum | 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 Spectrum are often matched by competitors | Yes, Spectrum is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Spectrum dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Spectrum 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 Spectrum | Spectrum is leveraging the customer loyalty to good effect | Provide Spectrum medium term competitive advantage |
Spectrum 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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