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Sealed Air 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 Sealed Air to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Sealed Air? Defining Valuable in VRIO
A resource or capability is considered valuable for Sealed Air , if it allows the
Sealed Air to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Sealed Air to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Sealed Air.
What are Rare Resources for Sealed Air? Defining Rare in VRIO
In an industry that Sealed Air operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Sealed Air require rare resources to compete in the industry. If Sealed Air don’t have rare resources that are required to succeed in the industry then Sealed Air won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Sealed Air competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Sealed Air? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Sealed Air 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. Sealed Air 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 Sealed Air
What is a Organization for Sealed Air? Defining Organization in VRIO
Even if the Sealed Air 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 Sealed Air 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 |
---|---|---|---|---|---|
Alignment of Activities with Sealed Air 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 Sealed Air 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 |
Financial Resources of Sealed Air | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Sealed Air has reasonably sound financial position | Sealed Air has relatively sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Sealed Air | 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 E-Commerce Space for Sealed Air - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Sealed Air 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 |
Customer Community of Sealed Air | Yes, as customers are co-creating products | Yes, the Sealed Air has able to build a special relationship with its customers | It is very difficult for Sealed Air competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Sealed Air customers community ecosystem | Providing Strong Competitive Advantage |
Access to Cheap Capital for Sealed Air | Yes, as a leading player in the industry and current macro economic conditions, Sealed Air has access to cheap capital | No | Can be imitated by the competitors of Sealed Air | Not been totally exploited | Not significant in creating competitive advantage |
Supply Chain Network Flexibility of Sealed Air | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Sealed Air organizational structure and capabilities | Keeps the business running |
Sales Force and Channel Management of Sealed Air | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Sealed Air sustainable competitive advantage. Potential is certainly there. |
Track Record of Leadership Team at Sealed Air | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Sealed Air in delivering lower costs | No | Can be imitated by competitors of Sealed Air but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Marketing Expertise within Sealed Air | 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 Sealed Air are often matched by competitors | Yes, Sealed Air is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Brand awareness of Sealed Air products and services | Yes, the brand awareness of Sealed Air products are high | Yes, Sealed Air has one of the leading brand in the industry | No | Sealed Air has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Sealed Air 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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