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Biogen 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 Biogen to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Biogen? Defining Valuable in VRIO
A resource or capability is considered valuable for Biogen , if it allows the
Biogen to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Biogen to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Biogen.
What are Rare Resources for Biogen? Defining Rare in VRIO
In an industry that Biogen operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Biogen require rare resources to compete in the industry. If Biogen don’t have rare resources that are required to succeed in the industry then Biogen won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Biogen competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Biogen? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Biogen 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. Biogen 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 Biogen
What is a Organization for Biogen? Defining Organization in VRIO
Even if the Biogen 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 Biogen 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Biogen to thwart competition | Yes, IPR and other rights are rare and competition of Biogen 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 |
Supply Chain Network Flexibility of Biogen | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Biogen organizational structure and capabilities | Keeps the business running |
Position among Retailers and Wholesalers – Biogen retail strategy | Yes, Biogen has strong relationship with retailers and wholesalers | Yes, Biogen has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Biogen in delivering lower costs | No | Can be imitated by competitors of Biogen but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Biogen products and services | Yes, the brand awareness of Biogen products are high | Yes, Biogen has one of the leading brand in the industry | No | Biogen has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for Biogen - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Biogen 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, Biogen 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 Biogen | To a large extent yes | Providing Strong Competitive Advantage |
Biogen 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 Biogen | Biogen is leveraging the customer loyalty to good effect | Provide Biogen medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of Biogen | 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 Biogen | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of Biogen 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 |
Access to Cheap Capital for Biogen | Yes, as a leading player in the industry and current macro economic conditions, Biogen has access to cheap capital | No | Can be imitated by the competitors of Biogen | Not been totally exploited | Not significant in creating competitive advantage |
Successful Implementation of Digital Strategy at Biogen | 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 for Brand Extensions for Biogen 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 |
Biogen 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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