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Public Service Enterprise 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 Public Service Enterprise Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Public Service Enterprise Group? Defining Valuable in VRIO
A resource or capability is considered valuable for Public Service Enterprise Group , if it allows the
Public Service Enterprise 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 Public Service Enterprise Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Public Service Enterprise Group.
What are Rare Resources for Public Service Enterprise Group? Defining Rare in VRIO
In an industry that Public Service Enterprise Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Public Service Enterprise Group require rare resources to compete in the industry. If Public Service Enterprise Group don’t have rare resources that are required to succeed in the industry then Public Service Enterprise Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Public Service Enterprise 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 Public Service Enterprise Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Public Service Enterprise 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. Public Service Enterprise 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 Public Service Enterprise Group
What is a Organization for Public Service Enterprise Group? Defining Organization in VRIO
Even if the Public Service Enterprise 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 Public Service Enterprise 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Public Service Enterprise Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Public Service Enterprise 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 |
Customer Community of Public Service Enterprise Group | Yes, as customers are co-creating products | Yes, the Public Service Enterprise Group has able to build a special relationship with its customers | It is very difficult for Public Service Enterprise Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Public Service Enterprise Group customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Public Service Enterprise 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 Public Service Enterprise Group | To a large extent yes | Providing Strong Competitive Advantage |
Access to Cheap Capital for Public Service Enterprise Group | Yes, as a leading player in the industry and current macro economic conditions, Public Service Enterprise Group has access to cheap capital | No | Can be imitated by the competitors of Public Service Enterprise Group | Not been totally exploited | Not significant in creating competitive advantage |
Brand awareness of Public Service Enterprise Group products and services | Yes, the brand awareness of Public Service Enterprise Group products are high | Yes, Public Service Enterprise Group has one of the leading brand in the industry | No | Public Service Enterprise Group has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Public Service Enterprise Group in delivering lower costs | No | Can be imitated by competitors of Public Service Enterprise Group but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand Positioning of Public Service Enterprise Group 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Public Service Enterprise Group operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Public Service Enterprise Group is successful at it | Providing Strong Competitive Advantage |
Financial Resources of Public Service Enterprise Group | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Public Service Enterprise Group has reasonably sound financial position | Public Service Enterprise Group has relatively sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Public Service Enterprise Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Leadership Team at Public Service Enterprise Group | Yes | Yes | Can't be imitated by competitors | Yes | 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 Public Service Enterprise Group | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Public Service Enterprise Group organizational structure and capabilities | Keeps the business running |
Pricing Strategies of Public Service Enterprise Group | Yes, Public Service Enterprise 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 Public Service Enterprise Group with a Temporary Competitive Advantage |
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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