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Dr Pepper Snapple Group 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 Dr Pepper Snapple Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Dr Pepper Snapple Group? Defining Valuable in VRIO
A resource or capability is considered valuable for Dr Pepper Snapple Group , if it allows the
Dr Pepper Snapple Group to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Dr Pepper Snapple Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Dr Pepper Snapple Group.
What are Rare Resources for Dr Pepper Snapple Group? Defining Rare in VRIO
In an industry that Dr Pepper Snapple Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Dr Pepper Snapple Group require rare resources to compete in the industry. If Dr Pepper Snapple Group don’t have rare resources that are required to succeed in the industry then Dr Pepper Snapple Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Dr Pepper Snapple Group competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Dr Pepper Snapple Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Dr Pepper Snapple Group 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. Dr Pepper Snapple Group 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 Dr Pepper Snapple Group
What is a Organization for Dr Pepper Snapple Group? Defining Organization in VRIO
Even if the Dr Pepper Snapple Group 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 Dr Pepper Snapple Group 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 Dr Pepper Snapple Group | Yes, as a leading player in the industry and current macro economic conditions, Dr Pepper Snapple Group has access to cheap capital | No | Can be imitated by the competitors of Dr Pepper Snapple Group | Not been totally exploited | Not significant in creating competitive advantage |
Sales Force and Channel Management of Dr Pepper Snapple Group | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Dr Pepper Snapple Group sustainable competitive advantage. Potential is certainly there. |
Brand Positioning of Dr Pepper Snapple Group 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 Dr Pepper Snapple Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Dr Pepper Snapple Group 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 |
Product Portfolio and Synergy among Various Product Lines of Dr Pepper Snapple Group | 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 awareness of Dr Pepper Snapple Group products and services | Yes, the brand awareness of Dr Pepper Snapple Group products are high | Yes, Dr Pepper Snapple Group has one of the leading brand in the industry | No | Dr Pepper Snapple Group has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Dr Pepper Snapple Group retail strategy | Yes, Dr Pepper Snapple Group has strong relationship with retailers and wholesalers | Yes, Dr Pepper Snapple Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Dr Pepper Snapple Group 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 |
Marketing Expertise within Dr Pepper Snapple Group | 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 Dr Pepper Snapple Group are often matched by competitors | Yes, Dr Pepper Snapple Group is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Supply Chain Network Flexibility of Dr Pepper Snapple Group | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Dr Pepper Snapple Group organizational structure and capabilities | Keeps the business running |
Successful Implementation of Digital Strategy at Dr Pepper Snapple Group | 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Dr Pepper Snapple Group operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Dr Pepper Snapple Group is successful at it | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Dr Pepper Snapple Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Dr Pepper Snapple Group 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 Dr Pepper Snapple Group | To a large extent yes | Providing Strong Competitive Advantage |
Dr Pepper Snapple Group 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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