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Thermo Fisher Scientific 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 Thermo Fisher Scientific to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Thermo Fisher Scientific? Defining Valuable in VRIO
A resource or capability is considered valuable for Thermo Fisher Scientific , if it allows the
Thermo Fisher Scientific to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Thermo Fisher Scientific to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Thermo Fisher Scientific.
What are Rare Resources for Thermo Fisher Scientific? Defining Rare in VRIO
In an industry that Thermo Fisher Scientific operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Thermo Fisher Scientific require rare resources to compete in the industry. If Thermo Fisher Scientific don’t have rare resources that are required to succeed in the industry then Thermo Fisher Scientific won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Thermo Fisher Scientific competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Thermo Fisher Scientific? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Thermo Fisher Scientific 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. Thermo Fisher Scientific 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 Thermo Fisher Scientific
What is a Organization for Thermo Fisher Scientific? Defining Organization in VRIO
Even if the Thermo Fisher Scientific 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 Thermo Fisher Scientific 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 Thermo Fisher Scientific | 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Thermo Fisher Scientific to thwart competition | Yes, IPR and other rights are rare and competition of Thermo Fisher Scientific 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 |
Track Record of Leadership Team at Thermo Fisher Scientific | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of Thermo Fisher Scientific | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Thermo Fisher Scientific has reasonably sound financial position | Thermo Fisher Scientific has relatively 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 Thermo Fisher Scientific operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Thermo Fisher Scientific is successful at it | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Thermo Fisher Scientific retail strategy | Yes, Thermo Fisher Scientific has strong relationship with retailers and wholesalers | Yes, Thermo Fisher Scientific has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Thermo Fisher Scientific | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Thermo Fisher Scientific organizational structure and capabilities | Keeps the business running |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Customer Community of Thermo Fisher Scientific | Yes, as customers are co-creating products | Yes, the Thermo Fisher Scientific has able to build a special relationship with its customers | It is very difficult for Thermo Fisher Scientific competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Thermo Fisher Scientific customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Thermo Fisher Scientific 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Thermo Fisher Scientific 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 Thermo Fisher Scientific | To a large extent yes | Providing Strong Competitive Advantage |
Access to Cheap Capital for Thermo Fisher Scientific | Yes, as a leading player in the industry and current macro economic conditions, Thermo Fisher Scientific has access to cheap capital | No | Can be imitated by the competitors of Thermo Fisher Scientific | 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 Thermo Fisher Scientific | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of Thermo Fisher Scientific 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 |
Thermo Fisher Scientific 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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