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Genesis Healthcare 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 Genesis Healthcare to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Genesis Healthcare? Defining Valuable in VRIO
A resource or capability is considered valuable for Genesis Healthcare , if it allows the
Genesis Healthcare to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Genesis Healthcare to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Genesis Healthcare.
What are Rare Resources for Genesis Healthcare? Defining Rare in VRIO
In an industry that Genesis Healthcare operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Genesis Healthcare require rare resources to compete in the industry. If Genesis Healthcare don’t have rare resources that are required to succeed in the industry then Genesis Healthcare won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Genesis Healthcare competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Genesis Healthcare? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Genesis Healthcare 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. Genesis Healthcare 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 Genesis Healthcare
What is a Organization for Genesis Healthcare? Defining Organization in VRIO
Even if the Genesis Healthcare 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 Genesis Healthcare 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 |
---|---|---|---|---|---|
Track Record of Leadership Team at Genesis Healthcare | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Genesis Healthcare | 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Opportunities in the E-Commerce Space for Genesis Healthcare - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Genesis Healthcare 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Genesis Healthcare | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Cheap Capital for Genesis Healthcare | Yes, as a leading player in the industry and current macro economic conditions, Genesis Healthcare has access to cheap capital | No | Can be imitated by the competitors of Genesis Healthcare | Not been totally exploited | Not significant in creating competitive advantage |
Genesis Healthcare 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 Genesis Healthcare | Genesis Healthcare is leveraging the customer loyalty to good effect | Provide Genesis Healthcare medium term competitive advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Genesis Healthcare 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 Genesis Healthcare | To a large extent yes | Providing Strong Competitive Advantage |
Marketing Expertise within Genesis Healthcare | 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 Genesis Healthcare are often matched by competitors | Yes, Genesis Healthcare is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that Genesis Healthcare 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 |
Opportunities for Brand Extensions for Genesis Healthcare 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 |
Alignment of Activities with Genesis Healthcare 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 |
Customer Community of Genesis Healthcare | Yes, as customers are co-creating products | Yes, the Genesis Healthcare has able to build a special relationship with its customers | It is very difficult for Genesis Healthcare competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Genesis Healthcare customers community ecosystem | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Genesis Healthcare in delivering lower costs | No | Can be imitated by competitors of Genesis Healthcare but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Genesis Healthcare 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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