Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
News Corp. 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 News Corp. to do better resource allocation and build a defensible value and supply chain.
Order a News Corp. VRIO / VRIN Analysis now
What is a Valuable Resource for News Corp.? Defining Valuable in VRIO
A resource or capability is considered valuable for News Corp. , if it allows the
News Corp. to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow News Corp. to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for News Corp..
What are Rare Resources for News Corp.? Defining Rare in VRIO
In an industry that News Corp. operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. News Corp. require rare resources to compete in the industry. If News Corp. don’t have rare resources that are required to succeed in the industry then News Corp. won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide News Corp. competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for News Corp.? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to News Corp. 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. News Corp. 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 News Corp.
What is a Organization for News Corp.? Defining Organization in VRIO
Even if the News Corp. 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 News Corp. 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 |
---|---|---|---|---|---|
Brand awareness of News Corp. products and services | Yes, the brand awareness of News Corp. products are high | Yes, News Corp. has one of the leading brand in the industry | No | News Corp. has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Customer Community of News Corp. | Yes, as customers are co-creating products | Yes, the News Corp. has able to build a special relationship with its customers | It is very difficult for News Corp. competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on News Corp. customers community ecosystem | 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 News Corp. operates in | No, none of the competitors so far has able to imitate this expertise | Yes, News Corp. is successful at it | Providing Strong Competitive Advantage |
Sales Force and Channel Management of News Corp. | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide News Corp. sustainable competitive advantage. Potential is certainly there. |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with News Corp. dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Financial Resources of News Corp. | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | News Corp. has reasonably sound financial position | News Corp. has relatively sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps News Corp. in delivering lower costs | No | Can be imitated by competitors of News Corp. but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of News Corp. | 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 |
Opportunities in the Adjacent Industries that News Corp. 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 News Corp. | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for News Corp. 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 |
Successful Implementation of Digital Strategy at News Corp. | 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 |
Global and Local Presence of News Corp. | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of News Corp. but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – News Corp. retail strategy | Yes, News Corp. has strong relationship with retailers and wholesalers | Yes, News Corp. has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
News Corp. 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Pacific Life VRIO / VRIN Analysis
- Laboratory Corp. of America VRIO / VRIN Analysis
- Anadarko Petroleum VRIO / VRIN Analysis
- Veritiv VRIO / VRIN Analysis
- EOG Resources VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Jarden VRIO / VRIN Analysis
- SunTrust Banks VRIO / VRIN Analysis
- Avis Budget Group VRIO / VRIN Analysis
- Broadcom VRIO / VRIN Analysis
- American Family Insurance Group VRIO / VRIN Analysis