Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Molina Healthcare 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 Molina Healthcare to do better resource allocation and build a defensible value and supply chain.
Order a Molina Healthcare VRIO / VRIN Analysis now
What is a Valuable Resource for Molina Healthcare? Defining Valuable in VRIO
A resource or capability is considered valuable for Molina Healthcare , if it allows the
Molina Healthcare to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Molina Healthcare to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Molina Healthcare.
What are Rare Resources for Molina Healthcare? Defining Rare in VRIO
In an industry that Molina Healthcare operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Molina Healthcare require rare resources to compete in the industry. If Molina Healthcare don’t have rare resources that are required to succeed in the industry then Molina Healthcare won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Molina Healthcare competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Molina Healthcare? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Molina Healthcare 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. Molina Healthcare 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 Molina Healthcare
What is a Organization for Molina Healthcare? Defining Organization in VRIO
Even if the Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare 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 |
Customer Community of Molina Healthcare | Yes, as customers are co-creating products | Yes, the Molina Healthcare has able to build a special relationship with its customers | It is very difficult for Molina Healthcare competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Molina Healthcare customers community ecosystem | Providing Strong Competitive Advantage |
Marketing Expertise within Molina Healthcare | 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 Molina Healthcare are often matched by competitors | Yes, Molina Healthcare is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Product Portfolio and Synergy among Various Product Lines of Molina Healthcare | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Molina Healthcare | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Leadership Team at Molina Healthcare | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Molina Healthcare | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Molina Healthcare organizational structure and capabilities | Keeps the business running |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Molina Healthcare operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Molina Healthcare is successful at it | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Molina Healthcare 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, Molina Healthcare 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 Molina Healthcare | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Molina Healthcare retail strategy | Yes, Molina Healthcare has strong relationship with retailers and wholesalers | Yes, Molina Healthcare has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Molina Healthcare dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Molina Healthcare in delivering lower costs | No | Can be imitated by competitors of Molina Healthcare but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Molina Healthcare 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- DaVita VRIO / VRIN Analysis
- Aramark VRIO / VRIN Analysis
- Kinder Morgan VRIO / VRIN Analysis
- Nordstrom VRIO / VRIN Analysis
- Office Depot VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- WellCare Health Plans VRIO / VRIN Analysis
- CBS VRIO / VRIN Analysis
- Visa VRIO / VRIN Analysis
- Lincoln National VRIO / VRIN Analysis
- Ecolab VRIO / VRIN Analysis