Fortune Brands Home & Security 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 Fortune Brands Home & Security to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Fortune Brands Home & Security? Defining Valuable in VRIO

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

What are Rare Resources for Fortune Brands Home & Security? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Fortune Brands Home & Security? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Fortune Brands Home & Security 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. Fortune Brands Home & Security 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 Fortune Brands Home & Security

What is a Organization for Fortune Brands Home & Security? Defining Organization in VRIO

Even if the Fortune Brands Home & Security 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 Fortune Brands Home & Security 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
Financial Resources of Fortune Brands Home & Security	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Fortune Brands Home & Security has reasonably sound financial position	Fortune Brands Home & Security has relatively sustainable Competitive Advantage
Brand awareness of Fortune Brands Home & Security products and services	Yes, the brand awareness of Fortune Brands Home & Security products are high	Yes, Fortune Brands Home & Security has one of the leading brand in the industry	No	Fortune Brands Home & Security has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Position among Retailers and Wholesalers – Fortune Brands Home & Security retail strategy	Yes, Fortune Brands Home & Security has strong relationship with retailers and wholesalers	Yes, Fortune Brands Home & Security has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Track Record of Leadership Team at Fortune Brands Home & Security	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Pricing Strategies of Fortune Brands Home & Security	Yes, Fortune Brands Home & Security has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Fortune Brands Home & Security with a Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Fortune Brands Home & Security	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Supply Chain Network Flexibility of Fortune Brands Home & Security	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Fortune Brands Home & Security organizational structure and capabilities	Keeps the business running
Fortune Brands Home & Security 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 Fortune Brands Home & Security	Fortune Brands Home & Security is leveraging the customer loyalty to good effect	Provide Fortune Brands Home & Security medium term competitive advantage
Opportunities for Brand Extensions for Fortune Brands Home & Security 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 Fortune Brands Home & Security	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Fortune Brands Home & Security sustainable competitive advantage. Potential is certainly there.
Brand Positioning of Fortune Brands Home & Security 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
Customer Community of Fortune Brands Home & Security	Yes, as customers are co-creating products	Yes, the Fortune Brands Home & Security has able to build a special relationship with its customers	It is very difficult for Fortune Brands Home & Security competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Fortune Brands Home & Security customers community ecosystem	Providing Strong Competitive Advantage
Alignment of Activities with Fortune Brands Home & Security 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

Fortune Brands Home & Security SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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