Mead Johnson Nutrition 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 Mead Johnson Nutrition to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Mead Johnson Nutrition? Defining Valuable in VRIO

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

What are Rare Resources for Mead Johnson Nutrition? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Mead Johnson Nutrition? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Mead Johnson Nutrition 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. Mead Johnson Nutrition 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 Mead Johnson Nutrition

What is a Organization for Mead Johnson Nutrition? Defining Organization in VRIO

Even if the Mead Johnson Nutrition 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 Mead Johnson Nutrition 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 Mead Johnson Nutrition 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
Global and Local Presence of Mead Johnson Nutrition	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Mead Johnson Nutrition but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Mead Johnson Nutrition	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Opportunities in the E-Commerce Space for Mead Johnson Nutrition - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Mead Johnson Nutrition 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Mead Johnson Nutrition operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Mead Johnson Nutrition is successful at it	Providing Strong Competitive Advantage
Mead Johnson Nutrition 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 Mead Johnson Nutrition	Mead Johnson Nutrition is leveraging the customer loyalty to good effect	Provide Mead Johnson Nutrition medium term competitive advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Mead Johnson Nutrition in delivering lower costs	No	Can be imitated by competitors of Mead Johnson Nutrition but it is difficult	Yes	Medium to Long Term Competitive Advantage
Brand awareness of Mead Johnson Nutrition products and services	Yes, the brand awareness of Mead Johnson Nutrition products are high	Yes, Mead Johnson Nutrition has one of the leading brand in the industry	No	Mead Johnson Nutrition has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities for Brand Extensions for Mead Johnson Nutrition 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Product Portfolio and Synergy among Various Product Lines of Mead Johnson Nutrition	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
Access to Cheap Capital for Mead Johnson Nutrition	Yes, as a leading player in the industry and current macro economic conditions, Mead Johnson Nutrition has access to cheap capital	No	Can be imitated by the competitors of Mead Johnson Nutrition	Not been totally exploited	Not significant in creating competitive advantage
Track Record of Leadership Team at Mead Johnson Nutrition	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities in the Adjacent Industries that Mead Johnson Nutrition 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

Mead Johnson Nutrition SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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