Huntington Ingalls Industries 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 Huntington Ingalls Industries to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Huntington Ingalls Industries? Defining Valuable in VRIO

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

What are Rare Resources for Huntington Ingalls Industries? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Huntington Ingalls Industries? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Huntington Ingalls Industries 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. Huntington Ingalls Industries 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 Huntington Ingalls Industries

What is a Organization for Huntington Ingalls Industries? Defining Organization in VRIO

Even if the Huntington Ingalls Industries 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 Huntington Ingalls Industries 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
Access to Cheap Capital for Huntington Ingalls Industries	Yes, as a leading player in the industry and current macro economic conditions, Huntington Ingalls Industries has access to cheap capital	No	Can be imitated by the competitors of Huntington Ingalls Industries	Not been totally exploited	Not significant in creating competitive advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Huntington Ingalls Industries	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Huntington Ingalls Industries	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
Huntington Ingalls Industries 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 Huntington Ingalls Industries	Huntington Ingalls Industries is leveraging the customer loyalty to good effect	Provide Huntington Ingalls Industries medium term competitive advantage
Alignment of Activities with Huntington Ingalls Industries 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
Supply Chain Network Flexibility of Huntington Ingalls Industries	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Huntington Ingalls Industries organizational structure and capabilities	Keeps the business running
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Huntington Ingalls Industries operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Huntington Ingalls Industries is successful at it	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Huntington Ingalls Industries in delivering lower costs	No	Can be imitated by competitors of Huntington Ingalls Industries but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand awareness of Huntington Ingalls Industries products and services	Yes, the brand awareness of Huntington Ingalls Industries products are high	Yes, Huntington Ingalls Industries has one of the leading brand in the industry	No	Huntington Ingalls Industries has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Huntington Ingalls Industries dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Huntington Ingalls Industries to thwart competition	Yes, IPR and other rights are rare and competition of Huntington Ingalls Industries 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Huntington Ingalls Industries strategy is built on successful innovation and localization of products	Yes, as talent is critical to firm's growth	Difficult to imitate for the current competitors of Huntington Ingalls Industries	To a large extent yes	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of Huntington Ingalls Industries	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Huntington Ingalls Industries has reasonably sound financial position	Huntington Ingalls Industries has relatively sustainable Competitive Advantage

Huntington Ingalls Industries SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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