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General Cable 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 General Cable to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for General Cable? Defining Valuable in VRIO
A resource or capability is considered valuable for General Cable , if it allows the
General Cable to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow General Cable to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for General Cable.
What are Rare Resources for General Cable? Defining Rare in VRIO
In an industry that General Cable operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. General Cable require rare resources to compete in the industry. If General Cable don’t have rare resources that are required to succeed in the industry then General Cable won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide General Cable competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for General Cable? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to General Cable 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. General Cable 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 General Cable
What is a Organization for General Cable? Defining Organization in VRIO
Even if the General Cable 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 General Cable 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 |
---|---|---|---|---|---|
Opportunities in the E-Commerce Space for General Cable - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and General Cable 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 General Cable 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 |
Pricing Strategies of General Cable | Yes, General Cable has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide General Cable with a Temporary Competitive Advantage |
Global and Local Presence of General Cable | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of General Cable but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Cheap Capital for General Cable | Yes, as a leading player in the industry and current macro economic conditions, General Cable has access to cheap capital | No | Can be imitated by the competitors of General Cable | Not been totally exploited | Not significant in creating competitive advantage |
Brand Positioning of General Cable 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 |
Sales Force and Channel Management of General Cable | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide General Cable sustainable competitive advantage. Potential is certainly there. |
Opportunities in the Adjacent Industries that General Cable 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 |
Supply Chain Network Flexibility of General Cable | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by General Cable organizational structure and capabilities | Keeps the business running |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of General Cable | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Position among Retailers and Wholesalers – General Cable retail strategy | Yes, General Cable has strong relationship with retailers and wholesalers | Yes, General Cable has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at General Cable | 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 |
Product Portfolio and Synergy among Various Product Lines of General Cable | 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
General Cable 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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