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HRG 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 HRG Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for HRG Group? Defining Valuable in VRIO
A resource or capability is considered valuable for HRG Group , if it allows the
HRG 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 HRG Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for HRG Group.
What are Rare Resources for HRG Group? Defining Rare in VRIO
In an industry that HRG Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. HRG Group require rare resources to compete in the industry. If HRG Group don’t have rare resources that are required to succeed in the industry then HRG Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide HRG 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 HRG Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to HRG 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. HRG 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 HRG Group
What is a Organization for HRG Group? Defining Organization in VRIO
Even if the HRG 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 HRG 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at HRG 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 |
Sales Force and Channel Management of HRG Group | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide HRG Group sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for HRG Group to thwart competition | Yes, IPR and other rights are rare and competition of HRG Group 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Supply Chain Network Flexibility of HRG Group | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by HRG Group organizational structure and capabilities | Keeps the business running |
Track Record of Leadership Team at HRG Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with HRG Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Global and Local Presence of HRG Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of HRG Group but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Customer Community of HRG Group | Yes, as customers are co-creating products | Yes, the HRG Group has able to build a special relationship with its customers | It is very difficult for HRG Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on HRG Group customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, HRG 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 HRG Group | To a large extent yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of HRG 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that HRG Group operates in | No, none of the competitors so far has able to imitate this expertise | Yes, HRG Group is successful at it | Providing Strong Competitive Advantage |
Access to Cheap Capital for HRG Group | Yes, as a leading player in the industry and current macro economic conditions, HRG Group has access to cheap capital | No | Can be imitated by the competitors of HRG Group | Not been totally exploited | Not significant in creating competitive advantage |
Opportunities in the Adjacent Industries that HRG Group can exploit & New Resources Required to Enter those Industries | Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
HRG 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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