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Pacific Life 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 Pacific Life to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Pacific Life? Defining Valuable in VRIO
A resource or capability is considered valuable for Pacific Life , if it allows the
Pacific Life to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Pacific Life to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Pacific Life.
What are Rare Resources for Pacific Life? Defining Rare in VRIO
In an industry that Pacific Life operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Pacific Life require rare resources to compete in the industry. If Pacific Life don’t have rare resources that are required to succeed in the industry then Pacific Life won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Pacific Life competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Pacific Life? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Pacific Life 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. Pacific Life 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 Pacific Life
What is a Organization for Pacific Life? Defining Organization in VRIO
Even if the Pacific Life 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 Pacific Life 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 Pacific Life | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Pacific Life sustainable competitive advantage. Potential is certainly there. |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Pacific Life operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Pacific Life is successful at it | Providing Strong Competitive Advantage |
Access to Cheap Capital for Pacific Life | Yes, as a leading player in the industry and current macro economic conditions, Pacific Life has access to cheap capital | No | Can be imitated by the competitors of Pacific Life | Not been totally exploited | Not significant in creating competitive advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Pacific Life dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Pacific Life 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 |
Track Record of Leadership Team at Pacific Life | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Pacific Life 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Successful Implementation of Digital Strategy at Pacific Life | 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 |
Pricing Strategies of Pacific Life | Yes, Pacific Life has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Pacific Life with a Temporary Competitive Advantage |
Pacific Life 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 Pacific Life | Pacific Life is leveraging the customer loyalty to good effect | Provide Pacific Life medium term competitive advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Pacific Life 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 Pacific Life | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Pacific Life retail strategy | Yes, Pacific Life has strong relationship with retailers and wholesalers | Yes, Pacific Life has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Customer Community of Pacific Life | Yes, as customers are co-creating products | Yes, the Pacific Life has able to build a special relationship with its customers | It is very difficult for Pacific Life competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Pacific Life customers community ecosystem | Providing Strong Competitive Advantage |
Pacific Life 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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