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Calumet Specialty Products Partners 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 Calumet Specialty Products Partners to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Calumet Specialty Products Partners? Defining Valuable in VRIO
A resource or capability is considered valuable for Calumet Specialty Products Partners , if it allows the
Calumet Specialty Products Partners to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Calumet Specialty Products Partners to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Calumet Specialty Products Partners.
What are Rare Resources for Calumet Specialty Products Partners? Defining Rare in VRIO
In an industry that Calumet Specialty Products Partners operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Calumet Specialty Products Partners require rare resources to compete in the industry. If Calumet Specialty Products Partners don’t have rare resources that are required to succeed in the industry then Calumet Specialty Products Partners won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Calumet Specialty Products Partners competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Calumet Specialty Products Partners? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Calumet Specialty Products Partners 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. Calumet Specialty Products Partners 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 Calumet Specialty Products Partners
What is a Organization for Calumet Specialty Products Partners? Defining Organization in VRIO
Even if the Calumet Specialty Products Partners 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 Calumet Specialty Products Partners 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 Positioning of Calumet Specialty Products Partners 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 |
Successful Implementation of Digital Strategy at Calumet Specialty Products Partners | 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Calumet Specialty Products Partners operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Calumet Specialty Products Partners is successful at it | Providing Strong Competitive Advantage |
Global and Local Presence of Calumet Specialty Products Partners | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Calumet Specialty Products Partners but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Calumet Specialty Products Partners 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 Calumet Specialty Products Partners | Calumet Specialty Products Partners is leveraging the customer loyalty to good effect | Provide Calumet Specialty Products Partners medium term competitive advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Calumet Specialty Products Partners | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Cheap Capital for Calumet Specialty Products Partners | Yes, as a leading player in the industry and current macro economic conditions, Calumet Specialty Products Partners has access to cheap capital | No | Can be imitated by the competitors of Calumet Specialty Products Partners | Not been totally exploited | Not significant in creating competitive advantage |
Customer Community of Calumet Specialty Products Partners | Yes, as customers are co-creating products | Yes, the Calumet Specialty Products Partners has able to build a special relationship with its customers | It is very difficult for Calumet Specialty Products Partners competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Calumet Specialty Products Partners customers community ecosystem | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Calumet Specialty Products Partners dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Calumet Specialty Products Partners | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Calumet Specialty Products Partners organizational structure and capabilities | Keeps the business running |
Opportunities in the E-Commerce Space for Calumet Specialty Products Partners - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Calumet Specialty Products Partners 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 |
Product Portfolio and Synergy among Various Product Lines of Calumet Specialty Products Partners | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Calumet Specialty Products Partners 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 Calumet Specialty Products Partners | To a large extent yes | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
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
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