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

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What is a Valuable Resource for Becton Dickinson? Defining Valuable in VRIO

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

What are Rare Resources for Becton Dickinson? Defining Rare in VRIO

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

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

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

What is a Organization for Becton Dickinson? Defining Organization in VRIO

Even if the Becton Dickinson 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 Becton Dickinson 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
Marketing Expertise within Becton Dickinson	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 Becton Dickinson are often matched by competitors	Yes, Becton Dickinson is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Alignment of Activities with Becton Dickinson 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
Global and Local Presence of Becton Dickinson	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Becton Dickinson but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Access to Cheap Capital for Becton Dickinson	Yes, as a leading player in the industry and current macro economic conditions, Becton Dickinson has access to cheap capital	No	Can be imitated by the competitors of Becton Dickinson	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Becton Dickinson	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Brand Positioning of Becton Dickinson 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
Position among Retailers and Wholesalers – Becton Dickinson retail strategy	Yes, Becton Dickinson has strong relationship with retailers and wholesalers	Yes, Becton Dickinson 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 Becton Dickinson operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Becton Dickinson is successful at it	Providing Strong Competitive Advantage
Pricing Strategies of Becton Dickinson	Yes, Becton Dickinson has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Becton Dickinson with a Temporary Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Becton Dickinson in delivering lower costs	No	Can be imitated by competitors of Becton Dickinson but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the Adjacent Industries that Becton Dickinson 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
Successful Implementation of Digital Strategy at Becton Dickinson	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
Financial Resources of Becton Dickinson	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Becton Dickinson has reasonably sound financial position	Becton Dickinson has relatively sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Becton Dickinson	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

Becton Dickinson 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