Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Tenneco 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 Tenneco to do better resource allocation and build a defensible value and supply chain.
Order a Tenneco VRIO / VRIN Analysis now
What is a Valuable Resource for Tenneco? Defining Valuable in VRIO
A resource or capability is considered valuable for Tenneco , if it allows the
Tenneco to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Tenneco to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Tenneco.
What are Rare Resources for Tenneco? Defining Rare in VRIO
In an industry that Tenneco operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Tenneco require rare resources to compete in the industry. If Tenneco don’t have rare resources that are required to succeed in the industry then Tenneco won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Tenneco competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Tenneco? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Tenneco 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. Tenneco 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 Tenneco
What is a Organization for Tenneco? Defining Organization in VRIO
Even if the Tenneco 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 Tenneco 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of Tenneco | 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 Tenneco 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Tenneco to thwart competition | Yes, IPR and other rights are rare and competition of Tenneco will find it extremely difficult to copy | Risk of imitation is low but given the margins in the industry disruption chances are high | So far the firm has not utilized the full extent of its IPR & other properties | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Tenneco | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Pricing Strategies of Tenneco | Yes, Tenneco has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Tenneco with a Temporary Competitive Advantage |
Financial Resources of Tenneco | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Tenneco has reasonably sound financial position | Tenneco has relatively sustainable Competitive Advantage |
Opportunities for Brand Extensions for Tenneco 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 |
Global and Local Presence of Tenneco | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Tenneco but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Tenneco dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Tenneco | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Tenneco organizational structure and capabilities | Keeps the business running |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Tenneco operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Tenneco is successful at it | Providing Strong Competitive Advantage |
Alignment of Activities with Tenneco 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Track Record of Leadership Team at Tenneco | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Tenneco 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
- Level 3 Communications VRIO / VRIN Analysis
- American Family Insurance Group VRIO / VRIN Analysis
- Broadcom VRIO / VRIN Analysis
- Avis Budget Group VRIO / VRIN Analysis
- SunTrust Banks VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- United Natural Foods VRIO / VRIN Analysis
- Dean Foods VRIO / VRIN Analysis
- Campbell Soup VRIO / VRIN Analysis
- Mohawk Industries VRIO / VRIN Analysis
- BorgWarner VRIO / VRIN Analysis