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Goodyear Tire & Rubber 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 Goodyear Tire & Rubber to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Goodyear Tire & Rubber? Defining Valuable in VRIO
A resource or capability is considered valuable for Goodyear Tire & Rubber , if it allows the
Goodyear Tire & Rubber to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Goodyear Tire & Rubber to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Goodyear Tire & Rubber.
What are Rare Resources for Goodyear Tire & Rubber? Defining Rare in VRIO
In an industry that Goodyear Tire & Rubber operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Goodyear Tire & Rubber require rare resources to compete in the industry. If Goodyear Tire & Rubber don’t have rare resources that are required to succeed in the industry then Goodyear Tire & Rubber won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Goodyear Tire & Rubber competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Goodyear Tire & Rubber? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Goodyear Tire & Rubber 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. Goodyear Tire & Rubber 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 Goodyear Tire & Rubber
What is a Organization for Goodyear Tire & Rubber? Defining Organization in VRIO
Even if the Goodyear Tire & Rubber 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 Goodyear Tire & Rubber 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 |
---|---|---|---|---|---|
Brand Positioning of Goodyear Tire & Rubber 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 |
Product Portfolio and Synergy among Various Product Lines of Goodyear Tire & Rubber | 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 Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Goodyear Tire & Rubber dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Goodyear Tire & Rubber | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Goodyear Tire & Rubber organizational structure and capabilities | Keeps the business running |
Opportunities in the E-Commerce Space for Goodyear Tire & Rubber - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Goodyear Tire & Rubber 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 |
Global and Local Presence of Goodyear Tire & Rubber | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Goodyear Tire & Rubber but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that Goodyear Tire & Rubber 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 |
Track Record of Leadership Team at Goodyear Tire & Rubber | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Financial Resources of Goodyear Tire & Rubber | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Goodyear Tire & Rubber has reasonably sound financial position | Goodyear Tire & Rubber has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Goodyear Tire & Rubber in delivering lower costs | No | Can be imitated by competitors of Goodyear Tire & Rubber but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Goodyear Tire & Rubber products and services | Yes, the brand awareness of Goodyear Tire & Rubber products are high | Yes, Goodyear Tire & Rubber has one of the leading brand in the industry | No | Goodyear Tire & Rubber has utilized its leading brand position in various segments | 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 Goodyear Tire & Rubber operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Goodyear Tire & Rubber is successful at it | Providing Strong Competitive Advantage |
Marketing Expertise within Goodyear Tire & Rubber | 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 Goodyear Tire & Rubber are often matched by competitors | Yes, Goodyear Tire & Rubber is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Position among Retailers and Wholesalers – Goodyear Tire & Rubber retail strategy | Yes, Goodyear Tire & Rubber has strong relationship with retailers and wholesalers | Yes, Goodyear Tire & Rubber has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Goodyear Tire & Rubber 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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