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

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What is a Valuable Resource for FM Global? Defining Valuable in VRIO

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

What are Rare Resources for FM Global? Defining Rare in VRIO

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

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

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

What is a Organization for FM Global? Defining Organization in VRIO

Even if the FM Global 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 FM Global 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 Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with FM Global dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Financial Resources of FM Global	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	FM Global has reasonably sound financial position	FM Global has relatively sustainable Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps FM Global in delivering lower costs	No	Can be imitated by competitors of FM Global but it is difficult	Yes	Medium to Long Term Competitive Advantage
Successful Implementation of Digital Strategy at FM Global	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
Opportunities in the Adjacent Industries that FM Global 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
Brand awareness of FM Global products and services	Yes, the brand awareness of FM Global products are high	Yes, FM Global has one of the leading brand in the industry	No	FM Global has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Customer Community of FM Global	Yes, as customers are co-creating products	Yes, the FM Global has able to build a special relationship with its customers	It is very difficult for FM Global competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on FM Global customers community ecosystem	Providing Strong Competitive Advantage
Opportunities for Brand Extensions for FM Global 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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for FM Global to thwart competition	Yes, IPR and other rights are rare and competition of FM Global 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 FM Global	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by FM Global organizational structure and capabilities	Keeps the business running
FM Global 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 FM Global	FM Global is leveraging the customer loyalty to good effect	Provide FM Global medium term competitive advantage
Brand Positioning of FM Global 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
Access to Cheap Capital for FM Global	Yes, as a leading player in the industry and current macro economic conditions, FM Global has access to cheap capital	No	Can be imitated by the competitors of FM Global	Not been totally exploited	Not significant in creating competitive advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor

FM Global 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