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Brookdale Senior Living 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 Brookdale Senior Living to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Brookdale Senior Living? Defining Valuable in VRIO
A resource or capability is considered valuable for Brookdale Senior Living , if it allows the
Brookdale Senior Living to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Brookdale Senior Living to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Brookdale Senior Living.
What are Rare Resources for Brookdale Senior Living? Defining Rare in VRIO
In an industry that Brookdale Senior Living operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Brookdale Senior Living require rare resources to compete in the industry. If Brookdale Senior Living don’t have rare resources that are required to succeed in the industry then Brookdale Senior Living won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Brookdale Senior Living competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Brookdale Senior Living? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Brookdale Senior Living 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. Brookdale Senior Living 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 Brookdale Senior Living
What is a Organization for Brookdale Senior Living? Defining Organization in VRIO
Even if the Brookdale Senior Living 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 Brookdale Senior Living 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 |
---|---|---|---|---|---|
Global and Local Presence of Brookdale Senior Living | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Brookdale Senior Living but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Brookdale Senior Living 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 Brookdale Senior Living | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Brookdale Senior Living 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Brookdale Senior Living in delivering lower costs | No | Can be imitated by competitors of Brookdale Senior Living but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Brookdale Senior Living dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Brand Positioning of Brookdale Senior Living 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 |
Marketing Expertise within Brookdale Senior Living | 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 Brookdale Senior Living are often matched by competitors | Yes, Brookdale Senior Living is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Cheap Capital for Brookdale Senior Living | Yes, as a leading player in the industry and current macro economic conditions, Brookdale Senior Living has access to cheap capital | No | Can be imitated by the competitors of Brookdale Senior Living | Not been totally exploited | Not significant in creating competitive advantage |
Customer Community of Brookdale Senior Living | Yes, as customers are co-creating products | Yes, the Brookdale Senior Living has able to build a special relationship with its customers | It is very difficult for Brookdale Senior Living competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Brookdale Senior Living customers community ecosystem | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Brookdale Senior Living | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Brookdale Senior Living to thwart competition | Yes, IPR and other rights are rare and competition of Brookdale Senior Living 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Brookdale Senior Living | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Position among Retailers and Wholesalers – Brookdale Senior Living retail strategy | Yes, Brookdale Senior Living has strong relationship with retailers and wholesalers | Yes, Brookdale Senior Living has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Brookdale Senior Living 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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