Boeing 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 Boeing to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Boeing? Defining Valuable in VRIO

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

What are Rare Resources for Boeing? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Boeing? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Boeing 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. Boeing 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 Boeing

What is a Organization for Boeing? Defining Organization in VRIO

Even if the Boeing 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 Boeing 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 Boeing 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
Boeing 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 Boeing	Boeing is leveraging the customer loyalty to good effect	Provide Boeing medium term competitive advantage
Marketing Expertise within Boeing	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 Boeing are often matched by competitors	Yes, Boeing is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Financial Resources of Boeing	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Boeing has reasonably sound financial position	Boeing has relatively sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Boeing - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Boeing 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
Track Record of Leadership Team at Boeing	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Boeing operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Boeing is successful at it	Providing Strong Competitive Advantage
Alignment of Activities with Boeing 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
Brand awareness of Boeing products and services	Yes, the brand awareness of Boeing products are high	Yes, Boeing has one of the leading brand in the industry	No	Boeing has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Customer Community of Boeing	Yes, as customers are co-creating products	Yes, the Boeing has able to build a special relationship with its customers	It is very difficult for Boeing competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Boeing customers community ecosystem	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Boeing	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Sales Force and Channel Management of Boeing	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Boeing sustainable competitive advantage. Potential is certainly there.
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Boeing dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Pricing Strategies of Boeing	Yes, Boeing has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Boeing with a Temporary Competitive Advantage

Boeing 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