Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
VWR 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 VWR to do better resource allocation and build a defensible value and supply chain.
Order a VWR VRIO / VRIN Analysis now
What is a Valuable Resource for VWR? Defining Valuable in VRIO
A resource or capability is considered valuable for VWR , if it allows the
VWR to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow VWR to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for VWR.
What are Rare Resources for VWR? Defining Rare in VRIO
In an industry that VWR operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. VWR require rare resources to compete in the industry. If VWR don’t have rare resources that are required to succeed in the industry then VWR won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide VWR competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for VWR? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to VWR 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. VWR 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 VWR
What is a Organization for VWR? Defining Organization in VRIO
Even if the VWR 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 VWR 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Position among Retailers and Wholesalers – VWR retail strategy | Yes, VWR has strong relationship with retailers and wholesalers | Yes, VWR has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Pricing Strategies of VWR | Yes, VWR has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide VWR with a Temporary Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for VWR to thwart competition | Yes, IPR and other rights are rare and competition of VWR 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 |
Marketing Expertise within VWR | 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 VWR are often matched by competitors | Yes, VWR is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Supply Chain Network Flexibility of VWR | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by VWR organizational structure and capabilities | Keeps the business running |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with VWR dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Financial Resources of VWR | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | VWR has reasonably sound financial position | VWR has relatively sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that VWR operates in | No, none of the competitors so far has able to imitate this expertise | Yes, VWR is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of VWR 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 |
VWR 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 VWR | VWR is leveraging the customer loyalty to good effect | Provide VWR medium term competitive advantage |
Customer Community of VWR | Yes, as customers are co-creating products | Yes, the VWR has able to build a special relationship with its customers | It is very difficult for VWR competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on VWR customers community ecosystem | Providing Strong Competitive Advantage |
Global and Local Presence of VWR | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of VWR but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Sales Force and Channel Management of VWR | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide VWR sustainable competitive advantage. Potential is certainly there. |
VWR 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- CA VRIO / VRIN Analysis
- Hyatt Hotels VRIO / VRIN Analysis
- FM Global VRIO / VRIN Analysis
- Orbital ATK VRIO / VRIN Analysis
- Patterson VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- Science Applications International VRIO / VRIN Analysis
- CF Industries Holdings VRIO / VRIN Analysis
- McCormick VRIO / VRIN Analysis
- LPL Financial Holdings VRIO / VRIN Analysis
- Alon USA Energy VRIO / VRIN Analysis