Universal Health Services 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 Universal Health Services to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Universal Health Services? Defining Valuable in VRIO

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

What are Rare Resources for Universal Health Services? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Universal Health Services? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Universal Health Services 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. Universal Health Services 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 Universal Health Services

What is a Organization for Universal Health Services? Defining Organization in VRIO

Even if the Universal Health Services 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 Universal Health Services 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
Sales Force and Channel Management of Universal Health Services	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Universal Health Services sustainable competitive advantage. Potential is certainly there.
Access to Cheap Capital for Universal Health Services	Yes, as a leading player in the industry and current macro economic conditions, Universal Health Services has access to cheap capital	No	Can be imitated by the competitors of Universal Health Services	Not been totally exploited	Not significant in creating competitive advantage
Brand awareness of Universal Health Services products and services	Yes, the brand awareness of Universal Health Services products are high	Yes, Universal Health Services has one of the leading brand in the industry	No	Universal Health Services has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Pricing Strategies of Universal Health Services	Yes, Universal Health Services has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Universal Health Services with a Temporary Competitive Advantage
Track Record of Leadership Team at Universal Health Services	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Universal Health Services operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Universal Health Services is successful at it	Providing Strong Competitive Advantage
Position among Retailers and Wholesalers – Universal Health Services retail strategy	Yes, Universal Health Services has strong relationship with retailers and wholesalers	Yes, Universal Health Services has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Marketing Expertise within Universal Health Services	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 Universal Health Services are often matched by competitors	Yes, Universal Health Services is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Successful Implementation of Digital Strategy at Universal Health Services	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
Supply Chain Network Flexibility of Universal Health Services	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Universal Health Services organizational structure and capabilities	Keeps the business running
Brand Positioning of Universal Health Services 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Universal Health Services in delivering lower costs	No	Can be imitated by competitors of Universal Health Services but it is difficult	Yes	Medium to Long Term Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Universal Health Services	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
Alignment of Activities with Universal Health Services 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

Universal Health Services SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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