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CBRE 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 CBRE Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for CBRE Group? Defining Valuable in VRIO
A resource or capability is considered valuable for CBRE Group , if it allows the
CBRE 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 CBRE Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CBRE Group.
What are Rare Resources for CBRE Group? Defining Rare in VRIO
In an industry that CBRE Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CBRE Group require rare resources to compete in the industry. If CBRE Group don’t have rare resources that are required to succeed in the industry then CBRE Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CBRE 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 CBRE Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to CBRE 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. CBRE 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 CBRE Group
What is a Organization for CBRE Group? Defining Organization in VRIO
Even if the CBRE 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 CBRE 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 |
---|---|---|---|---|---|
Ability to Attract Talent in Various Local & Global Markets | Yes, CBRE Group 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 CBRE Group | To a large extent yes | Providing Strong Competitive Advantage |
Pricing Strategies of CBRE Group | Yes, CBRE 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 CBRE Group with a Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with CBRE Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Marketing Expertise within CBRE Group | 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 CBRE Group are often matched by competitors | Yes, CBRE Group is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at CBRE Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
CBRE Group 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 CBRE Group | CBRE Group is leveraging the customer loyalty to good effect | Provide CBRE Group medium term competitive advantage |
Customer Community of CBRE Group | Yes, as customers are co-creating products | Yes, the CBRE Group has able to build a special relationship with its customers | It is very difficult for CBRE Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on CBRE Group customers community ecosystem | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Supply Chain Network Flexibility of CBRE Group | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by CBRE Group organizational structure and capabilities | Keeps the business running |
Opportunities in the E-Commerce Space for CBRE Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and CBRE 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 |
Sales Force and Channel Management of CBRE Group | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide CBRE Group sustainable competitive advantage. Potential is certainly there. |
Position among Retailers and Wholesalers – CBRE Group retail strategy | Yes, CBRE Group has strong relationship with retailers and wholesalers | Yes, CBRE Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that CBRE Group operates in | No, none of the competitors so far has able to imitate this expertise | Yes, CBRE Group is successful at it | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps CBRE Group in delivering lower costs | No | Can be imitated by competitors of CBRE Group but it is difficult | Yes | Medium to Long Term Competitive Advantage |
CBRE Group 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
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