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Kimberly-Clark 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 Kimberly-Clark to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Kimberly-Clark? Defining Valuable in VRIO
A resource or capability is considered valuable for Kimberly-Clark , if it allows the
Kimberly-Clark to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Kimberly-Clark to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Kimberly-Clark.
What are Rare Resources for Kimberly-Clark? Defining Rare in VRIO
In an industry that Kimberly-Clark operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Kimberly-Clark require rare resources to compete in the industry. If Kimberly-Clark don’t have rare resources that are required to succeed in the industry then Kimberly-Clark won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Kimberly-Clark competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Kimberly-Clark? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Kimberly-Clark 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. Kimberly-Clark 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 Kimberly-Clark
What is a Organization for Kimberly-Clark? Defining Organization in VRIO
Even if the Kimberly-Clark 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 Kimberly-Clark 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of Kimberly-Clark | Yes, it is valuable in the industry given the various segmentations & consumer preferences. | Most of the competitors are trying to enter the lucrative segments | Can be imitated by the competitors | The firm has used it to good effect, details can be found in case exhibit | Provide short term competitive advantage but requires constant innovation to sustain |
Access to Cheap Capital for Kimberly-Clark | Yes, as a leading player in the industry and current macro economic conditions, Kimberly-Clark has access to cheap capital | No | Can be imitated by the competitors of Kimberly-Clark | Not been totally exploited | Not significant in creating competitive advantage |
Brand Positioning of Kimberly-Clark 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Kimberly-Clark | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Kimberly-Clark | 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 |
Pricing Strategies of Kimberly-Clark | Yes, Kimberly-Clark has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Kimberly-Clark with a Temporary Competitive Advantage |
Alignment of Activities with Kimberly-Clark 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Kimberly-Clark in delivering lower costs | No | Can be imitated by competitors of Kimberly-Clark but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Marketing Expertise within Kimberly-Clark | 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 Kimberly-Clark are often matched by competitors | Yes, Kimberly-Clark is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the E-Commerce Space for Kimberly-Clark - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Kimberly-Clark 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 |
Brand awareness of Kimberly-Clark products and services | Yes, the brand awareness of Kimberly-Clark products are high | Yes, Kimberly-Clark has one of the leading brand in the industry | No | Kimberly-Clark has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Kimberly-Clark operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Kimberly-Clark is successful at it | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Kimberly-Clark | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Kimberly-Clark organizational structure and capabilities | Keeps the business running |
Kimberly-Clark 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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