Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Hikvision 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 Hikvision to do better resource allocation and build a defensible value and supply chain.
Order a Hikvision VRIO / VRIN Analysis now
What is a Valuable Resource for Hikvision? Defining Valuable in VRIO
A resource or capability is considered valuable for Hikvision , if it allows the
Hikvision to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Hikvision to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Hikvision.
What are Rare Resources for Hikvision? Defining Rare in VRIO
In an industry that Hikvision operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Hikvision require rare resources to compete in the industry. If Hikvision don’t have rare resources that are required to succeed in the industry then Hikvision won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Hikvision competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Hikvision? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Hikvision 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. Hikvision 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 Hikvision
What is a Organization for Hikvision? Defining Organization in VRIO
Even if the Hikvision 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 Hikvision 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Hikvision - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Hikvision 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 Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Hikvision operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Hikvision is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Hikvision 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 |
Financial Resources of Hikvision | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Hikvision has reasonably sound financial position | Hikvision has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Hikvision in delivering lower costs | No | Can be imitated by competitors of Hikvision but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Global and Local Presence of Hikvision | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Hikvision but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Hikvision | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Hikvision dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Customer Community of Hikvision | Yes, as customers are co-creating products | Yes, the Hikvision has able to build a special relationship with its customers | It is very difficult for Hikvision competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Hikvision customers community ecosystem | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Hikvision | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Position among Retailers and Wholesalers – Hikvision retail strategy | Yes, Hikvision has strong relationship with retailers and wholesalers | Yes, Hikvision has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Alignment of Activities with Hikvision 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 |
Opportunities in the Adjacent Industries that Hikvision 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Hikvision 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Fanta VRIO / VRIN Analysis
- Telcel VRIO / VRIN Analysis
- BG VRIO / VRIN Analysis
- Whole Foods VRIO / VRIN Analysis
- Asahi VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Capita VRIO / VRIN Analysis
- OCBC Bank VRIO / VRIN Analysis
- Shiseido VRIO / VRIN Analysis
- Tide/Ariel VRIO / VRIN Analysis
- Credit Mutuel VRIO / VRIN Analysis