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Packaging Corp. of America 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 Packaging Corp. of America to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Packaging Corp. of America? Defining Valuable in VRIO
A resource or capability is considered valuable for Packaging Corp. of America , if it allows the
Packaging Corp. of America to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Packaging Corp. of America to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Packaging Corp. of America.
What are Rare Resources for Packaging Corp. of America? Defining Rare in VRIO
In an industry that Packaging Corp. of America operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Packaging Corp. of America require rare resources to compete in the industry. If Packaging Corp. of America don’t have rare resources that are required to succeed in the industry then Packaging Corp. of America won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Packaging Corp. of America competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Packaging Corp. of America? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Packaging Corp. of America 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. Packaging Corp. of America 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 Packaging Corp. of America
What is a Organization for Packaging Corp. of America? Defining Organization in VRIO
Even if the Packaging Corp. of America 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 Packaging Corp. of America 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 |
---|---|---|---|---|---|
Global and Local Presence of Packaging Corp. of America | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Packaging Corp. of America 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 Packaging Corp. of America 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 |
Opportunities in the Adjacent Industries that Packaging Corp. of America 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 |
Product Portfolio and Synergy among Various Product Lines of Packaging Corp. of America | 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 |
Supply Chain Network Flexibility of Packaging Corp. of America | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Packaging Corp. of America organizational structure and capabilities | Keeps the business running |
Customer Community of Packaging Corp. of America | Yes, as customers are co-creating products | Yes, the Packaging Corp. of America has able to build a special relationship with its customers | It is very difficult for Packaging Corp. of America competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Packaging Corp. of America customers community ecosystem | Providing Strong Competitive Advantage |
Financial Resources of Packaging Corp. of America | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Packaging Corp. of America has reasonably sound financial position | Packaging Corp. of America has relatively sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Packaging Corp. of America | 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 Packaging Corp. of America | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Packaging Corp. of America sustainable competitive advantage. Potential is certainly there. |
Track Record of Leadership Team at Packaging Corp. of America | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Pricing Strategies of Packaging Corp. of America | Yes, Packaging Corp. of America has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Packaging Corp. of America with a Temporary Competitive Advantage |
Marketing Expertise within Packaging Corp. of America | 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 Packaging Corp. of America are often matched by competitors | Yes, Packaging Corp. of America is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities for Brand Extensions for Packaging Corp. of America 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 |
Access to Cheap Capital for Packaging Corp. of America | Yes, as a leading player in the industry and current macro economic conditions, Packaging Corp. of America has access to cheap capital | No | Can be imitated by the competitors of Packaging Corp. of America | Not been totally exploited | Not significant in creating competitive advantage |
Packaging Corp. of America 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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