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

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

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

What are Rare Resources for Avaya? Defining Rare in VRIO

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

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

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

What is a Organization for Avaya? Defining Organization in VRIO

Even if the Avaya 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 Avaya 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 Avaya products and services	Yes, the brand awareness of Avaya products are high	Yes, Avaya has one of the leading brand in the industry	No	Avaya has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Customer Community of Avaya	Yes, as customers are co-creating products	Yes, the Avaya has able to build a special relationship with its customers	It is very difficult for Avaya competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Avaya customers community ecosystem	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Avaya to thwart competition	Yes, IPR and other rights are rare and competition of Avaya 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 in the E-Commerce Space for Avaya - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Avaya 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
Opportunities in the Adjacent Industries that Avaya 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
Avaya 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 Avaya	Avaya is leveraging the customer loyalty to good effect	Provide Avaya medium term competitive advantage
Global and Local Presence of Avaya	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Avaya but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Avaya dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Position among Retailers and Wholesalers – Avaya retail strategy	Yes, Avaya has strong relationship with retailers and wholesalers	Yes, Avaya has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Financial Resources of Avaya	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Avaya has reasonably sound financial position	Avaya has relatively sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Avaya	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Access to Cheap Capital for Avaya	Yes, as a leading player in the industry and current macro economic conditions, Avaya has access to cheap capital	No	Can be imitated by the competitors of Avaya	Not been totally exploited	Not significant in creating competitive advantage
Opportunities for Brand Extensions for Avaya 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
Pricing Strategies of Avaya	Yes, Avaya has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Avaya with a Temporary Competitive Advantage

Avaya 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