Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Ascena Retail Group 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 Ascena Retail Group to do better resource allocation and build a defensible value and supply chain.
Order a Ascena Retail Group VRIO / VRIN Analysis now
What is a Valuable Resource for Ascena Retail Group? Defining Valuable in VRIO
A resource or capability is considered valuable for Ascena Retail Group , if it allows the
Ascena Retail Group to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Ascena Retail Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Ascena Retail Group.
What are Rare Resources for Ascena Retail Group? Defining Rare in VRIO
In an industry that Ascena Retail Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Ascena Retail Group require rare resources to compete in the industry. If Ascena Retail Group don’t have rare resources that are required to succeed in the industry then Ascena Retail Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Ascena Retail Group competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Ascena Retail Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Ascena Retail Group 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. Ascena Retail Group 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 Ascena Retail Group
What is a Organization for Ascena Retail Group? Defining Organization in VRIO
Even if the Ascena Retail Group 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 Ascena Retail Group 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for Ascena Retail Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Ascena Retail Group 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 |
Track Record of Leadership Team at Ascena Retail Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Brand Positioning of Ascena Retail Group 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Ascena Retail Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Access to Cheap Capital for Ascena Retail Group | Yes, as a leading player in the industry and current macro economic conditions, Ascena Retail Group has access to cheap capital | No | Can be imitated by the competitors of Ascena Retail Group | Not been totally exploited | Not significant in creating competitive advantage |
Successful Implementation of Digital Strategy at Ascena Retail Group | 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 |
Customer Community of Ascena Retail Group | Yes, as customers are co-creating products | Yes, the Ascena Retail Group has able to build a special relationship with its customers | It is very difficult for Ascena Retail Group competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Ascena Retail Group customers community ecosystem | Providing Strong Competitive Advantage |
Global and Local Presence of Ascena Retail Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Ascena Retail Group but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Ascena Retail Group | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Ascena Retail Group organizational structure and capabilities | Keeps the business running |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Ascena Retail Group in delivering lower costs | No | Can be imitated by competitors of Ascena Retail Group but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Ascena Retail Group | 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Ascena Retail Group to thwart competition | Yes, IPR and other rights are rare and competition of Ascena Retail Group 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 |
Position among Retailers and Wholesalers – Ascena Retail Group retail strategy | Yes, Ascena Retail Group has strong relationship with retailers and wholesalers | Yes, Ascena Retail Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Pricing Strategies of Ascena Retail Group | Yes, Ascena Retail Group has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Ascena Retail Group with a Temporary Competitive Advantage |
Ascena Retail Group 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- Pioneer Natural Resources VRIO / VRIN Analysis
- YRC Worldwide VRIO / VRIN Analysis
- Northern Trust VRIO / VRIN Analysis
- Juniper Networks VRIO / VRIN Analysis
- Berry Plastics Group VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Adobe Systems VRIO / VRIN Analysis
- Liberty Media VRIO / VRIN Analysis
- American Tower VRIO / VRIN Analysis
- Zoetis VRIO / VRIN Analysis
- Polaris Industries VRIO / VRIN Analysis