WellCare Health Plans 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 WellCare Health Plans to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for WellCare Health Plans? Defining Valuable in VRIO

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

What are Rare Resources for WellCare Health Plans? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for WellCare Health Plans? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to WellCare Health Plans 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. WellCare Health Plans 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 WellCare Health Plans

What is a Organization for WellCare Health Plans? Defining Organization in VRIO

Even if the WellCare Health Plans 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 WellCare Health Plans 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps WellCare Health Plans in delivering lower costs	No	Can be imitated by competitors of WellCare Health Plans but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand awareness of WellCare Health Plans products and services	Yes, the brand awareness of WellCare Health Plans products are high	Yes, WellCare Health Plans has one of the leading brand in the industry	No	WellCare Health Plans has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Financial Resources of WellCare Health Plans	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	WellCare Health Plans has reasonably sound financial position	WellCare Health Plans has relatively sustainable Competitive Advantage
Track Record of Leadership Team at WellCare Health Plans	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Pricing Strategies of WellCare Health Plans	Yes, WellCare Health Plans has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide WellCare Health Plans with a Temporary Competitive Advantage
Global and Local Presence of WellCare Health Plans	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of WellCare Health Plans but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Brand Positioning of WellCare Health Plans 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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for WellCare Health Plans to thwart competition	Yes, IPR and other rights are rare and competition of WellCare Health Plans 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Customer Community of WellCare Health Plans	Yes, as customers are co-creating products	Yes, the WellCare Health Plans has able to build a special relationship with its customers	It is very difficult for WellCare Health Plans competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on WellCare Health Plans customers community ecosystem	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at WellCare Health Plans	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
Opportunities in the E-Commerce Space for WellCare Health Plans - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and WellCare Health Plans 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
Ability to Attract Talent in Various Local & Global Markets	Yes, WellCare Health Plans 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 WellCare Health Plans	To a large extent yes	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of WellCare Health Plans	Not based on information provided in the case	Can Lead to Strong Competitive Advantage

WellCare Health Plans 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