Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
D.R. Horton 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 D.R. Horton to do better resource allocation and build a defensible value and supply chain.
Order a D.R. Horton VRIO / VRIN Analysis now
What is a Valuable Resource for D.R. Horton? Defining Valuable in VRIO
A resource or capability is considered valuable for D.R. Horton , if it allows the
D.R. Horton to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow D.R. Horton to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for D.R. Horton.
What are Rare Resources for D.R. Horton? Defining Rare in VRIO
In an industry that D.R. Horton operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. D.R. Horton require rare resources to compete in the industry. If D.R. Horton don’t have rare resources that are required to succeed in the industry then D.R. Horton won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide D.R. Horton competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for D.R. Horton? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to D.R. Horton 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. D.R. Horton 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 D.R. Horton
What is a Organization for D.R. Horton? Defining Organization in VRIO
Even if the D.R. Horton 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 D.R. Horton 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 |
---|---|---|---|---|---|
Track Record of Leadership Team at D.R. Horton | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of D.R. Horton | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of D.R. Horton but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Brand awareness of D.R. Horton products and services | Yes, the brand awareness of D.R. Horton products are high | Yes, D.R. Horton has one of the leading brand in the industry | No | D.R. Horton has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Financial Resources of D.R. Horton | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | D.R. Horton has reasonably sound financial position | D.R. Horton has relatively sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that D.R. Horton 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 |
Marketing Expertise within D.R. Horton | 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 D.R. Horton are often matched by competitors | Yes, D.R. Horton is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of D.R. Horton | 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 D.R. Horton | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Customer Community of D.R. Horton | Yes, as customers are co-creating products | Yes, the D.R. Horton has able to build a special relationship with its customers | It is very difficult for D.R. Horton competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on D.R. Horton customers community ecosystem | Providing Strong Competitive Advantage |
Brand Positioning of D.R. Horton 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 |
D.R. Horton 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 D.R. Horton | D.R. Horton is leveraging the customer loyalty to good effect | Provide D.R. Horton medium term competitive advantage |
Sales Force and Channel Management of D.R. Horton | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide D.R. Horton sustainable competitive advantage. Potential is certainly there. |
Opportunities for Brand Extensions for D.R. Horton 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 |
Access to Cheap Capital for D.R. Horton | Yes, as a leading player in the industry and current macro economic conditions, D.R. Horton has access to cheap capital | No | Can be imitated by the competitors of D.R. Horton | Not been totally exploited | Not significant in creating competitive advantage |
D.R. Horton 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
- CBRE Group VRIO / VRIN Analysis
- Murphy USA VRIO / VRIN Analysis
- Xcel Energy VRIO / VRIN Analysis
- Stanley Black & Decker VRIO / VRIN Analysis
- R.R. Donnelley & Sons VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Estee Lauder VRIO / VRIN Analysis
- Praxair VRIO / VRIN Analysis
- Biogen VRIO / VRIN Analysis
- State Street Corp. VRIO / VRIN Analysis
- Unum Group VRIO / VRIN Analysis