Express Scripts Holding 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 Express Scripts Holding to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Express Scripts Holding? Defining Valuable in VRIO

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

What are Rare Resources for Express Scripts Holding? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Express Scripts Holding? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Express Scripts Holding 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. Express Scripts Holding 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 Express Scripts Holding

What is a Organization for Express Scripts Holding? Defining Organization in VRIO

Even if the Express Scripts Holding 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 Express Scripts Holding 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Express Scripts Holding	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Alignment of Activities with Express Scripts Holding 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
Express Scripts Holding Customer Network and Loyalty	Yes, 23% of the customers contribute to more than 84% of the sales revenue	Yes, firm has invested to build a strong customer loyalty	Has been tried by competitors but none of them are as successful as Express Scripts Holding	Express Scripts Holding is leveraging the customer loyalty to good effect	Provide Express Scripts Holding medium term competitive advantage
Financial Resources of Express Scripts Holding	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Express Scripts Holding has reasonably sound financial position	Express Scripts Holding has relatively sustainable Competitive Advantage
Brand awareness of Express Scripts Holding products and services	Yes, the brand awareness of Express Scripts Holding products are high	Yes, Express Scripts Holding has one of the leading brand in the industry	No	Express Scripts Holding has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Global and Local Presence of Express Scripts Holding	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Express Scripts Holding but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Express Scripts Holding 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
Successful Implementation of Digital Strategy at Express Scripts Holding	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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Express Scripts Holding in delivering lower costs	No	Can be imitated by competitors of Express Scripts Holding but it is difficult	Yes	Medium to Long Term Competitive Advantage
Supply Chain Network Flexibility of Express Scripts Holding	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Express Scripts Holding 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 Express Scripts Holding operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Express Scripts Holding is successful at it	Providing Strong Competitive Advantage
Access to Cheap Capital for Express Scripts Holding	Yes, as a leading player in the industry and current macro economic conditions, Express Scripts Holding has access to cheap capital	No	Can be imitated by the competitors of Express Scripts Holding	Not been totally exploited	Not significant in creating competitive advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Express Scripts Holding 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 Express Scripts Holding	To a large extent yes	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for Express Scripts Holding - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Express Scripts Holding 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

Express Scripts Holding 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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