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YRC Worldwide 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 YRC Worldwide to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for YRC Worldwide? Defining Valuable in VRIO
A resource or capability is considered valuable for YRC Worldwide , if it allows the
YRC Worldwide to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow YRC Worldwide to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for YRC Worldwide.
What are Rare Resources for YRC Worldwide? Defining Rare in VRIO
In an industry that YRC Worldwide operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. YRC Worldwide require rare resources to compete in the industry. If YRC Worldwide don’t have rare resources that are required to succeed in the industry then YRC Worldwide won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide YRC Worldwide competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for YRC Worldwide? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to YRC Worldwide 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. YRC Worldwide 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 YRC Worldwide
What is a Organization for YRC Worldwide? Defining Organization in VRIO
Even if the YRC Worldwide 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 YRC Worldwide 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of YRC Worldwide | 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 YRC Worldwide 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 |
Opportunities for Brand Extensions for YRC Worldwide 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 |
Alignment of Activities with YRC Worldwide 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 |
Position among Retailers and Wholesalers – YRC Worldwide retail strategy | Yes, YRC Worldwide has strong relationship with retailers and wholesalers | Yes, YRC Worldwide has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with YRC Worldwide 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 |
Financial Resources of YRC Worldwide | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | YRC Worldwide has reasonably sound financial position | YRC Worldwide has relatively sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that YRC Worldwide operates in | No, none of the competitors so far has able to imitate this expertise | Yes, YRC Worldwide is successful at it | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at YRC Worldwide | 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 |
Track Record of Leadership Team at YRC Worldwide | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of YRC Worldwide | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of YRC Worldwide but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
YRC Worldwide 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 YRC Worldwide | YRC Worldwide is leveraging the customer loyalty to good effect | Provide YRC Worldwide medium term competitive advantage |
Opportunities in the E-Commerce Space for YRC Worldwide - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and YRC Worldwide 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 |
YRC Worldwide 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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