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

Order a Patterson VRIO / VRIN Analysis now

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

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

What are Rare Resources for Patterson? Defining Rare in VRIO

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

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

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

What is a Organization for Patterson? Defining Organization in VRIO

Even if the Patterson 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 Patterson 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
Access to Cheap Capital for Patterson	Yes, as a leading player in the industry and current macro economic conditions, Patterson has access to cheap capital	No	Can be imitated by the competitors of Patterson	Not been totally exploited	Not significant in creating competitive advantage
Financial Resources of Patterson	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Patterson has reasonably sound financial position	Patterson has relatively sustainable Competitive Advantage
Supply Chain Network Flexibility of Patterson	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Patterson 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 Patterson	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Customer Community of Patterson	Yes, as customers are co-creating products	Yes, the Patterson has able to build a special relationship with its customers	It is very difficult for Patterson competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Patterson customers community ecosystem	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Pricing Strategies of Patterson	Yes, Patterson has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Patterson with a Temporary Competitive Advantage
Alignment of Activities with Patterson 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
Patterson 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 Patterson	Patterson is leveraging the customer loyalty to good effect	Provide Patterson medium term competitive advantage
Opportunities in the E-Commerce Space for Patterson - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Patterson 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
Brand awareness of Patterson products and services	Yes, the brand awareness of Patterson products are high	Yes, Patterson has one of the leading brand in the industry	No	Patterson has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Patterson to thwart competition	Yes, IPR and other rights are rare and competition of Patterson 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
Opportunities for Brand Extensions for Patterson 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
Successful Implementation of Digital Strategy at Patterson	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

Patterson 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