Zoetis 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 Zoetis to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Zoetis? Defining Valuable in VRIO

A resource or capability is considered valuable for Zoetis , if it allows the Zoetis to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow Zoetis to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Zoetis.

What are Rare Resources for Zoetis? Defining Rare in VRIO

In an industry that Zoetis operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Zoetis require rare resources to compete in the industry. If Zoetis don’t have rare resources that are required to succeed in the industry then Zoetis won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Zoetis competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for Zoetis? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Zoetis 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. Zoetis 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 Zoetis

What is a Organization for Zoetis? Defining Organization in VRIO

Even if the Zoetis 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 Zoetis 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
Customer Community of Zoetis	Yes, as customers are co-creating products	Yes, the Zoetis has able to build a special relationship with its customers	It is very difficult for Zoetis competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Zoetis customers community ecosystem	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Zoetis dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Zoetis to thwart competition	Yes, IPR and other rights are rare and competition of Zoetis 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
Pricing Strategies of Zoetis	Yes, Zoetis has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Zoetis with a Temporary Competitive Advantage
Track Record of Leadership Team at Zoetis	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Brand awareness of Zoetis products and services	Yes, the brand awareness of Zoetis products are high	Yes, Zoetis has one of the leading brand in the industry	No	Zoetis has utilized its leading brand position in various segments	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 Zoetis operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Zoetis is successful at it	Providing Strong Competitive Advantage
Brand Positioning of Zoetis 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 Zoetis	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Opportunities for Brand Extensions for Zoetis 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
Sales Force and Channel Management of Zoetis	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Zoetis sustainable competitive advantage. Potential is certainly there.
Financial Resources of Zoetis	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Zoetis has reasonably sound financial position	Zoetis has relatively sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Opportunities in the Adjacent Industries that Zoetis 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

Zoetis 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