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

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

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

What are Rare Resources for Hasbro? Defining Rare in VRIO

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

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

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

What is a Organization for Hasbro? Defining Organization in VRIO

Even if the Hasbro 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 Hasbro 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
Brand awareness of Hasbro products and services	Yes, the brand awareness of Hasbro products are high	Yes, Hasbro has one of the leading brand in the industry	No	Hasbro has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Track Record of Leadership Team at Hasbro	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for Hasbro 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Hasbro strategy is built on successful innovation and localization of products	Yes, as talent is critical to firm's growth	Difficult to imitate for the current competitors of Hasbro	To a large extent yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Hasbro to thwart competition	Yes, IPR and other rights are rare and competition of Hasbro 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
Supply Chain Network Flexibility of Hasbro	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Hasbro organizational structure and capabilities	Keeps the business running
Access to Cheap Capital for Hasbro	Yes, as a leading player in the industry and current macro economic conditions, Hasbro has access to cheap capital	No	Can be imitated by the competitors of Hasbro	Not been totally exploited	Not significant in creating competitive advantage
Hasbro 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 Hasbro	Hasbro is leveraging the customer loyalty to good effect	Provide Hasbro medium term competitive advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Hasbro	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Financial Resources of Hasbro	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Hasbro has reasonably sound financial position	Hasbro has relatively sustainable Competitive Advantage
Position among Retailers and Wholesalers – Hasbro retail strategy	Yes, Hasbro has strong relationship with retailers and wholesalers	Yes, Hasbro has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Hasbro in delivering lower costs	No	Can be imitated by competitors of Hasbro but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand Positioning of Hasbro 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Hasbro operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Hasbro is successful at it	Providing Strong Competitive Advantage

Hasbro 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