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Oneok 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 Oneok to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Oneok? Defining Valuable in VRIO
A resource or capability is considered valuable for Oneok , if it allows the
Oneok to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Oneok to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Oneok.
What are Rare Resources for Oneok? Defining Rare in VRIO
In an industry that Oneok operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Oneok require rare resources to compete in the industry. If Oneok don’t have rare resources that are required to succeed in the industry then Oneok won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Oneok competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Oneok? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Oneok 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. Oneok 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 Oneok
What is a Organization for Oneok? Defining Organization in VRIO
Even if the Oneok 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 Oneok 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 |
---|---|---|---|---|---|
Financial Resources of Oneok | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Oneok has reasonably sound financial position | Oneok has relatively sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Oneok | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Sales Force and Channel Management of Oneok | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Oneok sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Oneok to thwart competition | Yes, IPR and other rights are rare and competition of Oneok 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 |
Marketing Expertise within Oneok | 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 Oneok are often matched by competitors | Yes, Oneok is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Oneok | 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 |
Successful Implementation of Digital Strategy at Oneok | 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 |
Alignment of Activities with Oneok 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 |
Customer Community of Oneok | Yes, as customers are co-creating products | Yes, the Oneok has able to build a special relationship with its customers | It is very difficult for Oneok competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Oneok customers community ecosystem | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Oneok in delivering lower costs | No | Can be imitated by competitors of Oneok but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand Positioning of Oneok in Comparison to the Competitors | Yes | No | Can be imitated by competitors but it will require big marketing budget | Yes, the firm has positioned its brands based on consumer behavior | Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Oneok dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Oneok operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Oneok is successful at it | Providing Strong Competitive Advantage |
Oneok 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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