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Keurig Green Mountain 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 Keurig Green Mountain to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Keurig Green Mountain? Defining Valuable in VRIO
A resource or capability is considered valuable for Keurig Green Mountain , if it allows the
Keurig Green Mountain to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Keurig Green Mountain to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Keurig Green Mountain.
What are Rare Resources for Keurig Green Mountain? Defining Rare in VRIO
In an industry that Keurig Green Mountain operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Keurig Green Mountain require rare resources to compete in the industry. If Keurig Green Mountain don’t have rare resources that are required to succeed in the industry then Keurig Green Mountain won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Keurig Green Mountain competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Keurig Green Mountain? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Keurig Green Mountain 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. Keurig Green Mountain 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 Keurig Green Mountain
What is a Organization for Keurig Green Mountain? Defining Organization in VRIO
Even if the Keurig Green Mountain 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 Keurig Green Mountain 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 |
---|---|---|---|---|---|
Position among Retailers and Wholesalers – Keurig Green Mountain retail strategy | Yes, Keurig Green Mountain has strong relationship with retailers and wholesalers | Yes, Keurig Green Mountain has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Marketing Expertise within Keurig Green Mountain | 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 Keurig Green Mountain are often matched by competitors | Yes, Keurig Green Mountain is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Pricing Strategies of Keurig Green Mountain | Yes, Keurig Green Mountain has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Keurig Green Mountain with a Temporary Competitive Advantage |
Opportunities in the E-Commerce Space for Keurig Green Mountain - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Keurig Green Mountain 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Keurig Green Mountain dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Sales Force and Channel Management of Keurig Green Mountain | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Keurig Green Mountain sustainable competitive advantage. Potential is certainly there. |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Keurig Green Mountain operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Keurig Green Mountain is successful at it | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that Keurig Green Mountain 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Keurig Green Mountain | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Alignment of Activities with Keurig Green Mountain 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 |
Keurig Green Mountain 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 Keurig Green Mountain | Keurig Green Mountain is leveraging the customer loyalty to good effect | Provide Keurig Green Mountain medium term competitive advantage |
Brand Positioning of Keurig Green Mountain 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 |
Brand awareness of Keurig Green Mountain products and services | Yes, the brand awareness of Keurig Green Mountain products are high | Yes, Keurig Green Mountain has one of the leading brand in the industry | No | Keurig Green Mountain has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Global and Local Presence of Keurig Green Mountain | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Keurig Green Mountain but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Keurig Green Mountain 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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