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Leidos Holdings 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 Leidos Holdings to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Leidos Holdings? Defining Valuable in VRIO
A resource or capability is considered valuable for Leidos Holdings , if it allows the
Leidos Holdings to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Leidos Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Leidos Holdings.
What are Rare Resources for Leidos Holdings? Defining Rare in VRIO
In an industry that Leidos Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Leidos Holdings require rare resources to compete in the industry. If Leidos Holdings don’t have rare resources that are required to succeed in the industry then Leidos Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Leidos Holdings competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Leidos Holdings? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Leidos Holdings 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. Leidos Holdings 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 Leidos Holdings
What is a Organization for Leidos Holdings? Defining Organization in VRIO
Even if the Leidos Holdings 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 Leidos Holdings 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 |
---|---|---|---|---|---|
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Leidos Holdings | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Sales Force and Channel Management of Leidos Holdings | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Leidos Holdings sustainable competitive advantage. Potential is certainly there. |
Access to Cheap Capital for Leidos Holdings | Yes, as a leading player in the industry and current macro economic conditions, Leidos Holdings has access to cheap capital | No | Can be imitated by the competitors of Leidos Holdings | Not been totally exploited | Not significant in creating competitive advantage |
Track Record of Leadership Team at Leidos Holdings | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Brand awareness of Leidos Holdings products and services | Yes, the brand awareness of Leidos Holdings products are high | Yes, Leidos Holdings has one of the leading brand in the industry | No | Leidos Holdings has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Alignment of Activities with Leidos Holdings 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 |
Brand Positioning of Leidos Holdings 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Leidos Holdings operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Leidos Holdings is successful at it | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Leidos Holdings 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 Leidos Holdings | To a large extent yes | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Leidos Holdings in delivering lower costs | No | Can be imitated by competitors of Leidos Holdings but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Leidos Holdings | 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 E-Commerce Space for Leidos Holdings - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Leidos Holdings 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 |
Global and Local Presence of Leidos Holdings | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Leidos Holdings but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Leidos Holdings 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 |
Leidos Holdings 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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