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CNO Financial 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 CNO Financial Group to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for CNO Financial Group? Defining Valuable in VRIO
A resource or capability is considered valuable for CNO Financial Group , if it allows the
CNO Financial 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 CNO Financial Group to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CNO Financial Group.
What are Rare Resources for CNO Financial Group? Defining Rare in VRIO
In an industry that CNO Financial Group operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CNO Financial Group require rare resources to compete in the industry. If CNO Financial Group don’t have rare resources that are required to succeed in the industry then CNO Financial Group won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CNO Financial 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 CNO Financial Group? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to CNO Financial 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. CNO Financial 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 CNO Financial Group
What is a Organization for CNO Financial Group? Defining Organization in VRIO
Even if the CNO Financial 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 CNO Financial 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at CNO Financial Group | 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 |
Brand Positioning of CNO Financial Group 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 |
Brand awareness of CNO Financial Group products and services | Yes, the brand awareness of CNO Financial Group products are high | Yes, CNO Financial Group has one of the leading brand in the industry | No | CNO Financial Group has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with CNO Financial Group dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for CNO Financial Group to thwart competition | Yes, IPR and other rights are rare and competition of CNO Financial Group 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 CNO Financial Group - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and CNO Financial Group 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, CNO Financial Group 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 CNO Financial Group | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that CNO Financial 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 |
Track Record of Leadership Team at CNO Financial Group | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – CNO Financial Group retail strategy | Yes, CNO Financial Group has strong relationship with retailers and wholesalers | Yes, CNO Financial Group has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Global and Local Presence of CNO Financial Group | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of CNO Financial 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 CNO Financial Group in delivering lower costs | No | Can be imitated by competitors of CNO Financial Group but it is difficult | Yes | Medium to Long Term Competitive Advantage |
CNO Financial 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 CNO Financial Group | CNO Financial Group is leveraging the customer loyalty to good effect | Provide CNO Financial Group medium term competitive advantage |
Alignment of Activities with CNO Financial 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 |
CNO Financial 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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