Realogy 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 Realogy Holdings to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Realogy Holdings? Defining Valuable in VRIO

A resource or capability is considered valuable for Realogy Holdings , if it allows the Realogy 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 Realogy Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Realogy Holdings.

What are Rare Resources for Realogy Holdings? Defining Rare in VRIO

In an industry that Realogy Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Realogy Holdings require rare resources to compete in the industry. If Realogy Holdings don’t have rare resources that are required to succeed in the industry then Realogy Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Realogy 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 Realogy Holdings? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Realogy 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. Realogy 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 Realogy Holdings

What is a Organization for Realogy Holdings? Defining Organization in VRIO

Even if the Realogy 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 Realogy 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
Pricing Strategies of Realogy Holdings	Yes, Realogy Holdings has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Realogy Holdings with a Temporary Competitive Advantage
Alignment of Activities with Realogy Holdings 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
Product Portfolio and Synergy among Various Product Lines of Realogy Holdings	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 Realogy Holdings operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Realogy Holdings is successful at it	Providing Strong Competitive Advantage
Access to Cheap Capital for Realogy Holdings	Yes, as a leading player in the industry and current macro economic conditions, Realogy Holdings has access to cheap capital	No	Can be imitated by the competitors of Realogy Holdings	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Realogy Holdings	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for Realogy Holdings - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Realogy 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 Realogy Holdings	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Realogy Holdings but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Sales Force and Channel Management of Realogy Holdings	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Realogy Holdings sustainable competitive advantage. Potential is certainly there.
Successful Implementation of Digital Strategy at Realogy 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
Opportunities for Brand Extensions for Realogy 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
Brand Positioning of Realogy 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
Supply Chain Network Flexibility of Realogy Holdings	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Realogy Holdings organizational structure and capabilities	Keeps the business running
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

Realogy 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