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Jabil Circuit 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 Jabil Circuit to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Jabil Circuit? Defining Valuable in VRIO
A resource or capability is considered valuable for Jabil Circuit , if it allows the
Jabil Circuit to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Jabil Circuit to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Jabil Circuit.
What are Rare Resources for Jabil Circuit? Defining Rare in VRIO
In an industry that Jabil Circuit operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Jabil Circuit require rare resources to compete in the industry. If Jabil Circuit don’t have rare resources that are required to succeed in the industry then Jabil Circuit won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Jabil Circuit competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Jabil Circuit? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Jabil Circuit 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. Jabil Circuit 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 Jabil Circuit
What is a Organization for Jabil Circuit? Defining Organization in VRIO
Even if the Jabil Circuit 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 Jabil Circuit 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 |
---|---|---|---|---|---|
Jabil Circuit 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 Jabil Circuit | Jabil Circuit is leveraging the customer loyalty to good effect | Provide Jabil Circuit medium term competitive advantage |
Supply Chain Network Flexibility of Jabil Circuit | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Jabil Circuit organizational structure and capabilities | Keeps the business running |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Jabil Circuit to thwart competition | Yes, IPR and other rights are rare and competition of Jabil Circuit 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 Adjacent Industries that Jabil Circuit 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 |
Brand Positioning of Jabil Circuit 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 for Brand Extensions for Jabil Circuit 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 |
Alignment of Activities with Jabil Circuit 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Jabil Circuit operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Jabil Circuit is successful at it | Providing Strong Competitive Advantage |
Brand awareness of Jabil Circuit products and services | Yes, the brand awareness of Jabil Circuit products are high | Yes, Jabil Circuit has one of the leading brand in the industry | No | Jabil Circuit has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Jabil Circuit | 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 |
Access to Cheap Capital for Jabil Circuit | Yes, as a leading player in the industry and current macro economic conditions, Jabil Circuit has access to cheap capital | No | Can be imitated by the competitors of Jabil Circuit | Not been totally exploited | Not significant in creating competitive advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Jabil Circuit | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Jabil Circuit dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Sales Force and Channel Management of Jabil Circuit | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Jabil Circuit sustainable competitive advantage. Potential is certainly there. |
Jabil Circuit 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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