Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Visteon 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 Visteon to do better resource allocation and build a defensible value and supply chain.
Order a Visteon VRIO / VRIN Analysis now
What is a Valuable Resource for Visteon? Defining Valuable in VRIO
A resource or capability is considered valuable for Visteon , if it allows the
Visteon to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Visteon to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Visteon.
What are Rare Resources for Visteon? Defining Rare in VRIO
In an industry that Visteon operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Visteon require rare resources to compete in the industry. If Visteon don’t have rare resources that are required to succeed in the industry then Visteon won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Visteon competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Visteon? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Visteon 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. Visteon 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 Visteon
What is a Organization for Visteon? Defining Organization in VRIO
Even if the Visteon 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 Visteon 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 |
---|---|---|---|---|---|
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Visteon dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Access to Cheap Capital for Visteon | Yes, as a leading player in the industry and current macro economic conditions, Visteon has access to cheap capital | No | Can be imitated by the competitors of Visteon | Not been totally exploited | Not significant in creating competitive advantage |
Financial Resources of Visteon | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Visteon has reasonably sound financial position | Visteon has relatively sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Visteon | 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 in the E-Commerce Space for Visteon - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Visteon 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Visteon in delivering lower costs | No | Can be imitated by competitors of Visteon but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities for Brand Extensions for Visteon 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 |
Opportunities in the Adjacent Industries that Visteon 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 |
Global and Local Presence of Visteon | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Visteon but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Customer Community of Visteon | Yes, as customers are co-creating products | Yes, the Visteon has able to build a special relationship with its customers | It is very difficult for Visteon competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Visteon customers community ecosystem | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Visteon retail strategy | Yes, Visteon has strong relationship with retailers and wholesalers | Yes, Visteon has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Pricing Strategies of Visteon | Yes, Visteon has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Visteon with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Visteon 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 Visteon | To a large extent yes | Providing Strong Competitive Advantage |
Visteon 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Envision Healthcare Holdings VRIO / VRIN Analysis
- Western Union VRIO / VRIN Analysis
- Kelly Services VRIO / VRIN Analysis
- Wyndham Worldwide VRIO / VRIN Analysis
- St. Jude Medical VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Arthur J. Gallagher VRIO / VRIN Analysis
- Host Hotels & Resorts VRIO / VRIN Analysis
- Ashland VRIO / VRIN Analysis
- Insight Enterprises VRIO / VRIN Analysis
- Energy Future Holdings VRIO / VRIN Analysis