CH2M Hill 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 CH2M Hill to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for CH2M Hill? Defining Valuable in VRIO

A resource or capability is considered valuable for CH2M Hill , if it allows the CH2M Hill to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow CH2M Hill to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CH2M Hill.

What are Rare Resources for CH2M Hill? Defining Rare in VRIO

In an industry that CH2M Hill operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CH2M Hill require rare resources to compete in the industry. If CH2M Hill don’t have rare resources that are required to succeed in the industry then CH2M Hill won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CH2M Hill competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for CH2M Hill? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to CH2M Hill 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. CH2M Hill 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 CH2M Hill

What is a Organization for CH2M Hill? Defining Organization in VRIO

Even if the CH2M Hill 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 CH2M Hill 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
Brand Positioning of CH2M Hill 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
Product Portfolio and Synergy among Various Product Lines of CH2M Hill	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
Opportunities in the Adjacent Industries that CH2M Hill 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
Successful Implementation of Digital Strategy at CH2M Hill	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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for CH2M Hill to thwart competition	Yes, IPR and other rights are rare and competition of CH2M Hill will find it extremely difficult to copy	Risk of imitation is low but given the margins in the industry disruption chances are high	So far the firm has not utilized the full extent of its IPR & other properties	Providing Strong Competitive Advantage
Pricing Strategies of CH2M Hill	Yes, CH2M Hill has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide CH2M Hill with a Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of CH2M Hill	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Customer Community of CH2M Hill	Yes, as customers are co-creating products	Yes, the CH2M Hill has able to build a special relationship with its customers	It is very difficult for CH2M Hill competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on CH2M Hill customers community ecosystem	Providing Strong Competitive Advantage
Sales Force and Channel Management of CH2M Hill	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide CH2M Hill sustainable competitive advantage. Potential is certainly there.
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that CH2M Hill operates in	No, none of the competitors so far has able to imitate this expertise	Yes, CH2M Hill is successful at it	Providing Strong Competitive Advantage
Alignment of Activities with CH2M Hill 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with CH2M Hill dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
CH2M Hill 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 CH2M Hill	CH2M Hill is leveraging the customer loyalty to good effect	Provide CH2M Hill medium term competitive advantage
Brand awareness of CH2M Hill products and services	Yes, the brand awareness of CH2M Hill products are high	Yes, CH2M Hill has one of the leading brand in the industry	No	CH2M Hill has utilized its leading brand position in various segments	Sustainable Competitive Advantage

CH2M Hill 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