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Burlington Stores 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 Burlington Stores to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Burlington Stores? Defining Valuable in VRIO
A resource or capability is considered valuable for Burlington Stores , if it allows the
Burlington Stores to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Burlington Stores to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Burlington Stores.
What are Rare Resources for Burlington Stores? Defining Rare in VRIO
In an industry that Burlington Stores operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Burlington Stores require rare resources to compete in the industry. If Burlington Stores don’t have rare resources that are required to succeed in the industry then Burlington Stores won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Burlington Stores competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Burlington Stores? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Burlington Stores 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. Burlington Stores 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 Burlington Stores
What is a Organization for Burlington Stores? Defining Organization in VRIO
Even if the Burlington Stores 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 Burlington Stores 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 |
---|---|---|---|---|---|
Pricing Strategies of Burlington Stores | Yes, Burlington Stores has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Burlington Stores with a Temporary Competitive Advantage |
Global and Local Presence of Burlington Stores | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Burlington Stores but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Burlington Stores dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Financial Resources of Burlington Stores | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Burlington Stores has reasonably sound financial position | Burlington Stores has relatively sustainable Competitive Advantage |
Opportunities for Brand Extensions for Burlington Stores 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 |
Supply Chain Network Flexibility of Burlington Stores | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Burlington Stores organizational structure and capabilities | Keeps the business running |
Access to Cheap Capital for Burlington Stores | Yes, as a leading player in the industry and current macro economic conditions, Burlington Stores has access to cheap capital | No | Can be imitated by the competitors of Burlington Stores | Not been totally exploited | Not significant in creating competitive advantage |
Burlington Stores 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 Burlington Stores | Burlington Stores is leveraging the customer loyalty to good effect | Provide Burlington Stores medium term competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Burlington Stores in delivering lower costs | No | Can be imitated by competitors of Burlington Stores but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Burlington Stores products and services | Yes, the brand awareness of Burlington Stores products are high | Yes, Burlington Stores has one of the leading brand in the industry | No | Burlington Stores has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for Burlington Stores - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Burlington Stores 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 |
Sales Force and Channel Management of Burlington Stores | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Burlington Stores sustainable competitive advantage. Potential is certainly there. |
Track Record of Leadership Team at Burlington Stores | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Burlington Stores | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Burlington Stores 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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