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Liberty Media 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 Liberty Media to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Liberty Media? Defining Valuable in VRIO
A resource or capability is considered valuable for Liberty Media , if it allows the
Liberty Media to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Liberty Media to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Liberty Media.
What are Rare Resources for Liberty Media? Defining Rare in VRIO
In an industry that Liberty Media operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Liberty Media require rare resources to compete in the industry. If Liberty Media don’t have rare resources that are required to succeed in the industry then Liberty Media won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Liberty Media competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Liberty Media? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Liberty Media 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. Liberty Media 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 Liberty Media
What is a Organization for Liberty Media? Defining Organization in VRIO
Even if the Liberty Media 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 Liberty Media 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at Liberty Media | 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 |
Brand Positioning of Liberty Media 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Liberty Media | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Alignment of Activities with Liberty Media 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 |
Product Portfolio and Synergy among Various Product Lines of Liberty Media | 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Liberty Media in delivering lower costs | No | Can be imitated by competitors of Liberty Media but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Liberty Media 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 Liberty Media | To a large extent yes | Providing Strong Competitive Advantage |
Marketing Expertise within Liberty Media | 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 Liberty Media are often matched by competitors | Yes, Liberty Media is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Position among Retailers and Wholesalers – Liberty Media retail strategy | Yes, Liberty Media has strong relationship with retailers and wholesalers | Yes, Liberty Media has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Brand awareness of Liberty Media products and services | Yes, the brand awareness of Liberty Media products are high | Yes, Liberty Media has one of the leading brand in the industry | No | Liberty Media has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Cheap Capital for Liberty Media | Yes, as a leading player in the industry and current macro economic conditions, Liberty Media has access to cheap capital | No | Can be imitated by the competitors of Liberty Media | Not been totally exploited | Not significant in creating competitive advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Liberty Media to thwart competition | Yes, IPR and other rights are rare and competition of Liberty Media 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Liberty Media dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Financial Resources of Liberty Media | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Liberty Media has reasonably sound financial position | Liberty Media has relatively sustainable Competitive Advantage |
Liberty Media 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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