Performance Food Group 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 Performance Food Group to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Performance Food Group? Defining Valuable in VRIO

A resource or capability is considered valuable for Performance Food Group , if it allows the Performance Food Group to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow Performance Food Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Performance Food Group.

What are Rare Resources for Performance Food Group? Defining Rare in VRIO

In an industry that Performance Food Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Performance Food Group require rare resources to compete in the industry. If Performance Food Group don’t have rare resources that are required to succeed in the industry then Performance Food Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Performance Food Group competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for Performance Food Group? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Performance Food Group 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. Performance Food Group 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 Performance Food Group

What is a Organization for Performance Food Group? Defining Organization in VRIO

Even if the Performance Food Group 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 Performance Food Group 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 Adjacent Industries that Performance Food Group 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 Performance Food Group	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Pricing Strategies of Performance Food Group	Yes, Performance Food Group has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Performance Food Group with a Temporary Competitive Advantage
Alignment of Activities with Performance Food Group 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
Product Portfolio and Synergy among Various Product Lines of Performance Food Group	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
Customer Community of Performance Food Group	Yes, as customers are co-creating products	Yes, the Performance Food Group has able to build a special relationship with its customers	It is very difficult for Performance Food Group competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Performance Food Group customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Performance Food Group in delivering lower costs	No	Can be imitated by competitors of Performance Food Group but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the E-Commerce Space for Performance Food Group - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Performance Food Group 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 Performance Food Group	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Performance Food Group but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Financial Resources of Performance Food Group	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Performance Food Group has reasonably sound financial position	Performance Food Group has relatively sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Performance Food Group	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Access to Cheap Capital for Performance Food Group	Yes, as a leading player in the industry and current macro economic conditions, Performance Food Group has access to cheap capital	No	Can be imitated by the competitors of Performance Food Group	Not been totally exploited	Not significant in creating competitive advantage
Sales Force and Channel Management of Performance Food Group	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Performance Food Group sustainable competitive advantage. Potential is certainly there.
Brand awareness of Performance Food Group products and services	Yes, the brand awareness of Performance Food Group products are high	Yes, Performance Food Group has one of the leading brand in the industry	No	Performance Food Group has utilized its leading brand position in various segments	Sustainable Competitive Advantage

Performance Food Group SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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