Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Ameren 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 Ameren to do better resource allocation and build a defensible value and supply chain.
Order a Ameren VRIO / VRIN Analysis now
What is a Valuable Resource for Ameren? Defining Valuable in VRIO
A resource or capability is considered valuable for Ameren , if it allows the
Ameren to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Ameren to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Ameren.
What are Rare Resources for Ameren? Defining Rare in VRIO
In an industry that Ameren operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Ameren require rare resources to compete in the industry. If Ameren don’t have rare resources that are required to succeed in the industry then Ameren won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Ameren competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Ameren? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Ameren 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. Ameren 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 Ameren
What is a Organization for Ameren? Defining Organization in VRIO
Even if the Ameren 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 Ameren 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 |
---|---|---|---|---|---|
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Ameren operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Ameren is successful at it | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Ameren dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Alignment of Activities with Ameren 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 |
Brand awareness of Ameren products and services | Yes, the brand awareness of Ameren products are high | Yes, Ameren has one of the leading brand in the industry | No | Ameren 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 |
Supply Chain Network Flexibility of Ameren | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Ameren organizational structure and capabilities | Keeps the business running |
Successful Implementation of Digital Strategy at Ameren | 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 |
Financial Resources of Ameren | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Ameren has reasonably sound financial position | Ameren has relatively sustainable Competitive Advantage |
Brand Positioning of Ameren 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Ameren to thwart competition | Yes, IPR and other rights are rare and competition of Ameren 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 |
Customer Community of Ameren | Yes, as customers are co-creating products | Yes, the Ameren has able to build a special relationship with its customers | It is very difficult for Ameren competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Ameren customers community ecosystem | Providing Strong Competitive Advantage |
Marketing Expertise within Ameren | 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 Ameren are often matched by competitors | Yes, Ameren is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Ameren 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 Ameren | Ameren is leveraging the customer loyalty to good effect | Provide Ameren medium term competitive advantage |
Opportunities for Brand Extensions for Ameren 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 |
Ameren 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
- Oshkosh VRIO / VRIN Analysis
- Graybar Electric VRIO / VRIN Analysis
- NetApp VRIO / VRIN Analysis
- American Financial Group VRIO / VRIN Analysis
- Baxalta VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- A-Mark Precious Metals VRIO / VRIN Analysis
- Barnes & Noble VRIO / VRIN Analysis
- Dana Holding VRIO / VRIN Analysis
- Constellation Brands VRIO / VRIN Analysis
- LifePoint Health VRIO / VRIN Analysis