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Dana Holding 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 Dana Holding to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Dana Holding? Defining Valuable in VRIO
A resource or capability is considered valuable for Dana Holding , if it allows the
Dana Holding to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Dana Holding to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Dana Holding.
What are Rare Resources for Dana Holding? Defining Rare in VRIO
In an industry that Dana Holding operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Dana Holding require rare resources to compete in the industry. If Dana Holding don’t have rare resources that are required to succeed in the industry then Dana Holding won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Dana Holding competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Dana Holding? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Dana Holding 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. Dana Holding 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 Dana Holding
What is a Organization for Dana Holding? Defining Organization in VRIO
Even if the Dana Holding 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 Dana Holding 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of Dana Holding | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Dana Holding sustainable competitive advantage. Potential is certainly there. |
Track Record of Leadership Team at Dana Holding | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Dana Holding | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Dana Holding organizational structure and capabilities | Keeps the business running |
Marketing Expertise within Dana Holding | 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 Dana Holding are often matched by competitors | Yes, Dana Holding is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Cheap Capital for Dana Holding | Yes, as a leading player in the industry and current macro economic conditions, Dana Holding has access to cheap capital | No | Can be imitated by the competitors of Dana Holding | Not been totally exploited | Not significant in creating competitive advantage |
Global and Local Presence of Dana Holding | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Dana Holding but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Alignment of Activities with Dana Holding 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 |
Dana Holding 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 Dana Holding | Dana Holding is leveraging the customer loyalty to good effect | Provide Dana Holding medium term competitive advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Dana Holding dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Dana Holding retail strategy | Yes, Dana Holding has strong relationship with retailers and wholesalers | Yes, Dana Holding has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Dana Holding to thwart competition | Yes, IPR and other rights are rare and competition of Dana Holding 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Dana Holding operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Dana Holding is successful at it | Providing Strong Competitive Advantage |
Pricing Strategies of Dana Holding | Yes, Dana Holding has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Dana Holding with a Temporary Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Dana Holding 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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