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Triumph Group 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 Triumph Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Triumph Group? Defining Valuable in VRIO
A resource or capability is considered valuable for Triumph Group , if it allows the
Triumph Group to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Triumph Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Triumph Group.
What are Rare Resources for Triumph Group? Defining Rare in VRIO
In an industry that Triumph Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Triumph Group require rare resources to compete in the industry. If Triumph Group don’t have rare resources that are required to succeed in the industry then Triumph Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Triumph Group competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Triumph Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Triumph Group 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. Triumph Group 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 Triumph Group
What is a Organization for Triumph Group? Defining Organization in VRIO
Even if the Triumph Group 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 Triumph Group 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 |
---|---|---|---|---|---|
Position among Retailers and Wholesalers – Triumph Group retail strategy | Yes, Triumph Group has strong relationship with retailers and wholesalers | Yes, Triumph Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Triumph Group | 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 |
Global and Local Presence of Triumph Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Triumph Group but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Triumph Group in delivering lower costs | No | Can be imitated by competitors of Triumph Group but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities in the Adjacent Industries that Triumph Group 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 |
Marketing Expertise within Triumph Group | 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 Triumph Group are often matched by competitors | Yes, Triumph Group is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Financial Resources of Triumph Group | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Triumph Group has reasonably sound financial position | Triumph Group has relatively sustainable Competitive Advantage |
Alignment of Activities with Triumph Group Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Track Record of Leadership Team at Triumph Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Triumph Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Pricing Strategies of Triumph Group | Yes, Triumph Group has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Triumph Group with a Temporary Competitive Advantage |
Access to Cheap Capital for Triumph Group | Yes, as a leading player in the industry and current macro economic conditions, Triumph Group has access to cheap capital | No | Can be imitated by the competitors of Triumph Group | Not been totally exploited | Not significant in creating competitive advantage |
Triumph Group 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 Triumph Group | Triumph Group is leveraging the customer loyalty to good effect | Provide Triumph Group medium term competitive advantage |
Opportunities for Brand Extensions for Triumph Group 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 |
Triumph Group 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
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