Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
NetApp 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 NetApp to do better resource allocation and build a defensible value and supply chain.
Order a NetApp VRIO / VRIN Analysis now
What is a Valuable Resource for NetApp? Defining Valuable in VRIO
A resource or capability is considered valuable for NetApp , if it allows the
NetApp to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow NetApp to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for NetApp.
What are Rare Resources for NetApp? Defining Rare in VRIO
In an industry that NetApp operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. NetApp require rare resources to compete in the industry. If NetApp don’t have rare resources that are required to succeed in the industry then NetApp won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide NetApp competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for NetApp? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to NetApp 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. NetApp 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 NetApp
What is a Organization for NetApp? Defining Organization in VRIO
Even if the NetApp 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 NetApp 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for NetApp to thwart competition | Yes, IPR and other rights are rare and competition of NetApp 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 |
Successful Implementation of Digital Strategy at NetApp | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, NetApp 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 NetApp | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – NetApp retail strategy | Yes, NetApp has strong relationship with retailers and wholesalers | Yes, NetApp 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 NetApp 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 |
Global and Local Presence of NetApp | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of NetApp but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Brand Positioning of NetApp 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps NetApp in delivering lower costs | No | Can be imitated by competitors of NetApp but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of NetApp | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Financial Resources of NetApp | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | NetApp has reasonably sound financial position | NetApp has relatively sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of NetApp | 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 |
Customer Community of NetApp | Yes, as customers are co-creating products | Yes, the NetApp has able to build a special relationship with its customers | It is very difficult for NetApp competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on NetApp customers community ecosystem | Providing Strong Competitive Advantage |
Brand awareness of NetApp products and services | Yes, the brand awareness of NetApp products are high | Yes, NetApp has one of the leading brand in the industry | No | NetApp has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
NetApp 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 NetApp | NetApp is leveraging the customer loyalty to good effect | Provide NetApp medium term competitive advantage |
NetApp 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- American Financial Group VRIO / VRIN Analysis
- Baxalta VRIO / VRIN Analysis
- Harman International Industries VRIO / VRIN Analysis
- Owens-Illinois VRIO / VRIN Analysis
- Commercial Metals VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Graybar Electric VRIO / VRIN Analysis
- Oshkosh VRIO / VRIN Analysis
- Ameren VRIO / VRIN Analysis
- A-Mark Precious Metals VRIO / VRIN Analysis
- Barnes & Noble VRIO / VRIN Analysis