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

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

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

What are Rare Resources for Pfizer? Defining Rare in VRIO

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

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

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

What is a Organization for Pfizer? Defining Organization in VRIO

Even if the Pfizer 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 Pfizer 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
Marketing Expertise within Pfizer	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 Pfizer are often matched by competitors	Yes, Pfizer is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Global and Local Presence of Pfizer	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Pfizer but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Pfizer	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Pfizer operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Pfizer is successful at it	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Pfizer dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Pfizer	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
Opportunities in the E-Commerce Space for Pfizer - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Pfizer 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
Customer Community of Pfizer	Yes, as customers are co-creating products	Yes, the Pfizer has able to build a special relationship with its customers	It is very difficult for Pfizer competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Pfizer customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Pfizer in delivering lower costs	No	Can be imitated by competitors of Pfizer but it is difficult	Yes	Medium to Long Term Competitive Advantage
Access to Cheap Capital for Pfizer	Yes, as a leading player in the industry and current macro economic conditions, Pfizer has access to cheap capital	No	Can be imitated by the competitors of Pfizer	Not been totally exploited	Not significant in creating competitive advantage
Position among Retailers and Wholesalers – Pfizer retail strategy	Yes, Pfizer has strong relationship with retailers and wholesalers	Yes, Pfizer has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Pfizer 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 Pfizer	Pfizer is leveraging the customer loyalty to good effect	Provide Pfizer medium term competitive advantage
Sales Force and Channel Management of Pfizer	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Pfizer sustainable competitive advantage. Potential is certainly there.
Supply Chain Network Flexibility of Pfizer	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Pfizer organizational structure and capabilities	Keeps the business running

Pfizer 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