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WhiteWave Foods 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 WhiteWave Foods to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for WhiteWave Foods? Defining Valuable in VRIO
A resource or capability is considered valuable for WhiteWave Foods , if it allows the
WhiteWave Foods to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow WhiteWave Foods to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for WhiteWave Foods.
What are Rare Resources for WhiteWave Foods? Defining Rare in VRIO
In an industry that WhiteWave Foods operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. WhiteWave Foods require rare resources to compete in the industry. If WhiteWave Foods don’t have rare resources that are required to succeed in the industry then WhiteWave Foods won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide WhiteWave Foods competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for WhiteWave Foods? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to WhiteWave Foods 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. WhiteWave Foods 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 WhiteWave Foods
What is a Organization for WhiteWave Foods? Defining Organization in VRIO
Even if the WhiteWave Foods 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 WhiteWave Foods 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of WhiteWave Foods | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide WhiteWave Foods sustainable competitive advantage. Potential is certainly there. |
Alignment of Activities with WhiteWave Foods 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for WhiteWave Foods to thwart competition | Yes, IPR and other rights are rare and competition of WhiteWave Foods 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps WhiteWave Foods in delivering lower costs | No | Can be imitated by competitors of WhiteWave Foods but it is difficult | Yes | Medium to Long Term Competitive Advantage |
WhiteWave Foods 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 WhiteWave Foods | WhiteWave Foods is leveraging the customer loyalty to good effect | Provide WhiteWave Foods medium term competitive advantage |
Successful Implementation of Digital Strategy at WhiteWave Foods | 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 |
Pricing Strategies of WhiteWave Foods | Yes, WhiteWave Foods has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide WhiteWave Foods with a Temporary Competitive Advantage |
Position among Retailers and Wholesalers – WhiteWave Foods retail strategy | Yes, WhiteWave Foods has strong relationship with retailers and wholesalers | Yes, WhiteWave Foods has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Customer Community of WhiteWave Foods | Yes, as customers are co-creating products | Yes, the WhiteWave Foods has able to build a special relationship with its customers | It is very difficult for WhiteWave Foods competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on WhiteWave Foods customers community ecosystem | Providing Strong Competitive Advantage |
Global and Local Presence of WhiteWave Foods | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of WhiteWave Foods 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 WhiteWave Foods | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Opportunities in the E-Commerce Space for WhiteWave Foods - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and WhiteWave Foods 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with WhiteWave Foods dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
WhiteWave Foods 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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