United Technologies 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 United Technologies to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for United Technologies? Defining Valuable in VRIO

A resource or capability is considered valuable for United Technologies , if it allows the United Technologies to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow United Technologies to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for United Technologies.

What are Rare Resources for United Technologies? Defining Rare in VRIO

In an industry that United Technologies operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. United Technologies require rare resources to compete in the industry. If United Technologies don’t have rare resources that are required to succeed in the industry then United Technologies won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide United Technologies competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for United Technologies? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to United Technologies 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. United Technologies 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 United Technologies

What is a Organization for United Technologies? Defining Organization in VRIO

Even if the United Technologies 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 United Technologies 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
Alignment of Activities with United Technologies 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 United Technologies 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
Brand Positioning of United Technologies 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of United Technologies	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Brand awareness of United Technologies products and services	Yes, the brand awareness of United Technologies products are high	Yes, United Technologies has one of the leading brand in the industry	No	United Technologies has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Track Record of Leadership Team at United Technologies	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Pricing Strategies of United Technologies	Yes, United Technologies has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide United Technologies with a Temporary Competitive Advantage
Opportunities for Brand Extensions for United Technologies 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
United Technologies 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 United Technologies	United Technologies is leveraging the customer loyalty to good effect	Provide United Technologies medium term competitive advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of United Technologies	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	United Technologies has reasonably sound financial position	United Technologies has relatively sustainable Competitive Advantage
Customer Community of United Technologies	Yes, as customers are co-creating products	Yes, the United Technologies has able to build a special relationship with its customers	It is very difficult for United Technologies competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on United Technologies customers community ecosystem	Providing Strong Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of United Technologies	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 United Technologies	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by United Technologies organizational structure and capabilities	Keeps the business running

United Technologies 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