Franklin Resources 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 Franklin Resources to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Franklin Resources? Defining Valuable in VRIO

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

What are Rare Resources for Franklin Resources? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Franklin Resources? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Franklin Resources 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. Franklin Resources 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 Franklin Resources

What is a Organization for Franklin Resources? Defining Organization in VRIO

Even if the Franklin Resources 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 Franklin Resources 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Franklin Resources	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Customer Community of Franklin Resources	Yes, as customers are co-creating products	Yes, the Franklin Resources has able to build a special relationship with its customers	It is very difficult for Franklin Resources competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Franklin Resources customers community ecosystem	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Franklin Resources	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Franklin Resources organizational structure and capabilities	Keeps the business running
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Sales Force and Channel Management of Franklin Resources	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Franklin Resources 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 Franklin Resources operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Franklin Resources is successful at it	Providing Strong Competitive Advantage
Franklin Resources 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 Franklin Resources	Franklin Resources is leveraging the customer loyalty to good effect	Provide Franklin Resources medium term competitive advantage
Opportunities in the E-Commerce Space for Franklin Resources - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Franklin Resources can exploit the emerging opportunities	No, most of the competitors are investing in IT to enter the space	The AI and inhouse analytics can be difficult to imitate	It is just the start for the organization	In the long run it can provide sustainable competitive advantage
Marketing Expertise within Franklin Resources	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 Franklin Resources are often matched by competitors	Yes, Franklin Resources is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Position among Retailers and Wholesalers – Franklin Resources retail strategy	Yes, Franklin Resources has strong relationship with retailers and wholesalers	Yes, Franklin Resources has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Pricing Strategies of Franklin Resources	Yes, Franklin Resources has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Franklin Resources with a Temporary Competitive Advantage
Brand awareness of Franklin Resources products and services	Yes, the brand awareness of Franklin Resources products are high	Yes, Franklin Resources has one of the leading brand in the industry	No	Franklin Resources has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Alignment of Activities with Franklin Resources 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
Opportunities for Brand Extensions for Franklin Resources 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

Franklin Resources 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