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SanDisk 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 SanDisk to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for SanDisk? Defining Valuable in VRIO
A resource or capability is considered valuable for SanDisk , if it allows the
SanDisk to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow SanDisk to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for SanDisk.
What are Rare Resources for SanDisk? Defining Rare in VRIO
In an industry that SanDisk operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. SanDisk require rare resources to compete in the industry. If SanDisk don’t have rare resources that are required to succeed in the industry then SanDisk won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide SanDisk competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for SanDisk? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to SanDisk 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. SanDisk 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 SanDisk
What is a Organization for SanDisk? Defining Organization in VRIO
Even if the SanDisk 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 SanDisk 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of SanDisk | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide SanDisk sustainable competitive advantage. Potential is certainly there. |
Product Portfolio and Synergy among Various Product Lines of SanDisk | 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 |
Alignment of Activities with SanDisk 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 |
Pricing Strategies of SanDisk | Yes, SanDisk has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide SanDisk with a Temporary Competitive Advantage |
Access to Cheap Capital for SanDisk | Yes, as a leading player in the industry and current macro economic conditions, SanDisk has access to cheap capital | No | Can be imitated by the competitors of SanDisk | Not been totally exploited | Not significant in creating competitive advantage |
Opportunities in the Adjacent Industries that SanDisk 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with SanDisk dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Brand awareness of SanDisk products and services | Yes, the brand awareness of SanDisk products are high | Yes, SanDisk has one of the leading brand in the industry | No | SanDisk has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that SanDisk operates in | No, none of the competitors so far has able to imitate this expertise | Yes, SanDisk is successful at it | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of SanDisk | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by SanDisk organizational structure and capabilities | Keeps the business running |
SanDisk 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 SanDisk | SanDisk is leveraging the customer loyalty to good effect | Provide SanDisk medium term competitive advantage |
Financial Resources of SanDisk | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | SanDisk has reasonably sound financial position | SanDisk has relatively sustainable Competitive Advantage |
Marketing Expertise within SanDisk | 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 SanDisk are often matched by competitors | Yes, SanDisk is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Global and Local Presence of SanDisk | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of SanDisk but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
SanDisk 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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