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

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What is a Valuable Resource for RPM International? Defining Valuable in VRIO

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

What are Rare Resources for RPM International? Defining Rare in VRIO

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

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

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

What is a Organization for RPM International? Defining Organization in VRIO

Even if the RPM International 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 RPM International 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps RPM International in delivering lower costs	No	Can be imitated by competitors of RPM International but it is difficult	Yes	Medium to Long Term Competitive Advantage
Track Record of Leadership Team at RPM International	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for RPM International - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and RPM International 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
Alignment of Activities with RPM International 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
Brand awareness of RPM International products and services	Yes, the brand awareness of RPM International products are high	Yes, RPM International has one of the leading brand in the industry	No	RPM International has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for RPM International to thwart competition	Yes, IPR and other rights are rare and competition of RPM International 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
Brand Positioning of RPM International 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
Opportunities in the Adjacent Industries that RPM International 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
RPM International 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 RPM International	RPM International is leveraging the customer loyalty to good effect	Provide RPM International medium term competitive advantage
Access to Cheap Capital for RPM International	Yes, as a leading player in the industry and current macro economic conditions, RPM International has access to cheap capital	No	Can be imitated by the competitors of RPM International	Not been totally exploited	Not significant in creating competitive advantage
Global and Local Presence of RPM International	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of RPM International but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Financial Resources of RPM International	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	RPM International has reasonably sound financial position	RPM International has relatively sustainable Competitive Advantage
Supply Chain Network Flexibility of RPM International	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by RPM International organizational structure and capabilities	Keeps the business running
Opportunities for Brand Extensions for RPM International 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

RPM International 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