Genworth Financial 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 Genworth Financial to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Genworth Financial? Defining Valuable in VRIO

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

What are Rare Resources for Genworth Financial? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Genworth Financial? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Genworth Financial 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. Genworth Financial 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 Genworth Financial

What is a Organization for Genworth Financial? Defining Organization in VRIO

Even if the Genworth Financial 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 Genworth Financial 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
Customer Community of Genworth Financial	Yes, as customers are co-creating products	Yes, the Genworth Financial has able to build a special relationship with its customers	It is very difficult for Genworth Financial competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Genworth Financial customers community ecosystem	Providing Strong Competitive Advantage
Genworth Financial 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 Genworth Financial	Genworth Financial is leveraging the customer loyalty to good effect	Provide Genworth Financial medium term competitive advantage
Brand Positioning of Genworth Financial 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
Brand awareness of Genworth Financial products and services	Yes, the brand awareness of Genworth Financial products are high	Yes, Genworth Financial has one of the leading brand in the industry	No	Genworth Financial has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Marketing Expertise within Genworth Financial	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 Genworth Financial are often matched by competitors	Yes, Genworth Financial is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Sales Force and Channel Management of Genworth Financial	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Genworth Financial sustainable competitive advantage. Potential is certainly there.
Pricing Strategies of Genworth Financial	Yes, Genworth Financial has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Genworth Financial with a Temporary Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Genworth Financial in delivering lower costs	No	Can be imitated by competitors of Genworth Financial but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the Adjacent Industries that Genworth Financial 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
Supply Chain Network Flexibility of Genworth Financial	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Genworth Financial organizational structure and capabilities	Keeps the business running
Position among Retailers and Wholesalers – Genworth Financial retail strategy	Yes, Genworth Financial has strong relationship with retailers and wholesalers	Yes, Genworth Financial has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Access to Cheap Capital for Genworth Financial	Yes, as a leading player in the industry and current macro economic conditions, Genworth Financial has access to cheap capital	No	Can be imitated by the competitors of Genworth Financial	Not been totally exploited	Not significant in creating competitive advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Genworth Financial 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 Genworth Financial	To a large extent yes	Providing Strong Competitive Advantage

Genworth Financial 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