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Dicks Sporting Goods 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 Dicks Sporting Goods to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Dicks Sporting Goods? Defining Valuable in VRIO
A resource or capability is considered valuable for Dicks Sporting Goods , if it allows the
Dicks Sporting Goods to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Dicks Sporting Goods to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Dicks Sporting Goods.
What are Rare Resources for Dicks Sporting Goods? Defining Rare in VRIO
In an industry that Dicks Sporting Goods operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Dicks Sporting Goods require rare resources to compete in the industry. If Dicks Sporting Goods don’t have rare resources that are required to succeed in the industry then Dicks Sporting Goods won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Dicks Sporting Goods competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Dicks Sporting Goods? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Dicks Sporting Goods 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. Dicks Sporting Goods 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 Dicks Sporting Goods
What is a Organization for Dicks Sporting Goods? Defining Organization in VRIO
Even if the Dicks Sporting Goods 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 Dicks Sporting Goods 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 |
---|---|---|---|---|---|
Position among Retailers and Wholesalers – Dicks Sporting Goods retail strategy | Yes, Dicks Sporting Goods has strong relationship with retailers and wholesalers | Yes, Dicks Sporting Goods has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Dicks Sporting Goods 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 Dicks Sporting Goods | Dicks Sporting Goods is leveraging the customer loyalty to good effect | Provide Dicks Sporting Goods medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of Dicks Sporting Goods | 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 |
Brand Positioning of Dicks Sporting Goods 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 |
Opportunities in the E-Commerce Space for Dicks Sporting Goods - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Dicks Sporting Goods 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Dicks Sporting Goods in delivering lower costs | No | Can be imitated by competitors of Dicks Sporting Goods but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Supply Chain Network Flexibility of Dicks Sporting Goods | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Dicks Sporting Goods organizational structure and capabilities | Keeps the business running |
Pricing Strategies of Dicks Sporting Goods | Yes, Dicks Sporting Goods has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Dicks Sporting Goods with a Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that Dicks Sporting Goods 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Dicks Sporting Goods | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Dicks Sporting Goods dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Global and Local Presence of Dicks Sporting Goods | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Dicks Sporting Goods but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Marketing Expertise within Dicks Sporting Goods | 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 Dicks Sporting Goods are often matched by competitors | Yes, Dicks Sporting Goods is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Alignment of Activities with Dicks Sporting Goods 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 |
Dicks Sporting Goods 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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