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Zimmer Biomet Holdings 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 Zimmer Biomet Holdings to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Zimmer Biomet Holdings? Defining Valuable in VRIO
A resource or capability is considered valuable for Zimmer Biomet Holdings , if it allows the
Zimmer Biomet Holdings to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Zimmer Biomet Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Zimmer Biomet Holdings.
What are Rare Resources for Zimmer Biomet Holdings? Defining Rare in VRIO
In an industry that Zimmer Biomet Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Zimmer Biomet Holdings require rare resources to compete in the industry. If Zimmer Biomet Holdings don’t have rare resources that are required to succeed in the industry then Zimmer Biomet Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Zimmer Biomet Holdings competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Zimmer Biomet Holdings? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Zimmer Biomet Holdings 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. Zimmer Biomet Holdings 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 Zimmer Biomet Holdings
What is a Organization for Zimmer Biomet Holdings? Defining Organization in VRIO
Even if the Zimmer Biomet Holdings 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 Zimmer Biomet Holdings 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Zimmer Biomet Holdings - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Zimmer Biomet Holdings 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 |
Global and Local Presence of Zimmer Biomet Holdings | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Zimmer Biomet Holdings but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Zimmer Biomet Holdings in delivering lower costs | No | Can be imitated by competitors of Zimmer Biomet Holdings but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities for Brand Extensions for Zimmer Biomet Holdings 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 |
Financial Resources of Zimmer Biomet Holdings | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Zimmer Biomet Holdings has reasonably sound financial position | Zimmer Biomet Holdings has relatively sustainable Competitive Advantage |
Brand awareness of Zimmer Biomet Holdings products and services | Yes, the brand awareness of Zimmer Biomet Holdings products are high | Yes, Zimmer Biomet Holdings has one of the leading brand in the industry | No | Zimmer Biomet Holdings has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Cheap Capital for Zimmer Biomet Holdings | Yes, as a leading player in the industry and current macro economic conditions, Zimmer Biomet Holdings has access to cheap capital | No | Can be imitated by the competitors of Zimmer Biomet Holdings | Not been totally exploited | Not significant in creating competitive advantage |
Track Record of Leadership Team at Zimmer Biomet Holdings | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Zimmer Biomet Holdings | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Zimmer Biomet Holdings organizational structure and capabilities | Keeps the business running |
Marketing Expertise within Zimmer Biomet Holdings | 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 Zimmer Biomet Holdings are often matched by competitors | Yes, Zimmer Biomet Holdings is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Brand Positioning of Zimmer Biomet Holdings 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 |
Successful Implementation of Digital Strategy at Zimmer Biomet Holdings | 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, Zimmer Biomet Holdings 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 Zimmer Biomet Holdings | 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 |
Zimmer Biomet Holdings 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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