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La Poste 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 La Poste to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for La Poste? Defining Valuable in VRIO
A resource or capability is considered valuable for La Poste , if it allows the
La Poste to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow La Poste to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for La Poste.
What are Rare Resources for La Poste? Defining Rare in VRIO
In an industry that La Poste operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. La Poste require rare resources to compete in the industry. If La Poste don’t have rare resources that are required to succeed in the industry then La Poste won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide La Poste competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for La Poste? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to La Poste 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. La Poste 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 La Poste
What is a Organization for La Poste? Defining Organization in VRIO
Even if the La Poste 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 La Poste 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 La Poste operates in | No, none of the competitors so far has able to imitate this expertise | Yes, La Poste is successful at it | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for La Poste - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and La Poste 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 |
Track Record of Leadership Team at La Poste | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of La Poste | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by La Poste organizational structure and capabilities | Keeps the business running |
Distribution and Logistics Costs Competitiveness | Yes, as it helps La Poste in delivering lower costs | No | Can be imitated by competitors of La Poste but it is difficult | Yes | Medium to Long Term 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 La Poste dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Global and Local Presence of La Poste | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of La Poste but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Financial Resources of La Poste | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | La Poste has reasonably sound financial position | La Poste has relatively sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, La Poste 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 La Poste | To a large extent yes | Providing Strong Competitive Advantage |
Alignment of Activities with La Poste 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 |
Customer Community of La Poste | Yes, as customers are co-creating products | Yes, the La Poste has able to build a special relationship with its customers | It is very difficult for La Poste competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on La Poste customers community ecosystem | Providing Strong Competitive Advantage |
Brand awareness of La Poste products and services | Yes, the brand awareness of La Poste products are high | Yes, La Poste has one of the leading brand in the industry | No | La Poste has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Sales Force and Channel Management of La Poste | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide La Poste sustainable competitive advantage. Potential is certainly there. |
La Poste 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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