Eversource Energy 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 Eversource Energy to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Eversource Energy? Defining Valuable in VRIO

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

What are Rare Resources for Eversource Energy? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Eversource Energy? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Eversource Energy 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. Eversource Energy 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 Eversource Energy

What is a Organization for Eversource Energy? Defining Organization in VRIO

Even if the Eversource Energy 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 Eversource Energy 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps Eversource Energy in delivering lower costs	No	Can be imitated by competitors of Eversource Energy but it is difficult	Yes	Medium to Long Term Competitive Advantage
Eversource Energy 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 Eversource Energy	Eversource Energy is leveraging the customer loyalty to good effect	Provide Eversource Energy medium term competitive advantage
Opportunities in the Adjacent Industries that Eversource Energy 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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Eversource Energy operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Eversource Energy is successful at it	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Eversource Energy	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Eversource Energy organizational structure and capabilities	Keeps the business running
Global and Local Presence of Eversource Energy	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Eversource Energy but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Alignment of Activities with Eversource Energy 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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Eversource Energy to thwart competition	Yes, IPR and other rights are rare and competition of Eversource Energy 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
Sales Force and Channel Management of Eversource Energy	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Eversource Energy sustainable competitive advantage. Potential is certainly there.
Financial Resources of Eversource Energy	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Eversource Energy has reasonably sound financial position	Eversource Energy has relatively sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Eversource Energy	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
Position among Retailers and Wholesalers – Eversource Energy retail strategy	Yes, Eversource Energy has strong relationship with retailers and wholesalers	Yes, Eversource Energy 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 Eversource Energy	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 Eversource Energy are often matched by competitors	Yes, Eversource Energy is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Opportunities for Brand Extensions for Eversource Energy 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

Eversource Energy 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