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CommScope Holding 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 CommScope Holding to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for CommScope Holding? Defining Valuable in VRIO
A resource or capability is considered valuable for CommScope Holding , if it allows the
CommScope Holding to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow CommScope Holding to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for CommScope Holding.
What are Rare Resources for CommScope Holding? Defining Rare in VRIO
In an industry that CommScope Holding operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. CommScope Holding require rare resources to compete in the industry. If CommScope Holding don’t have rare resources that are required to succeed in the industry then CommScope Holding won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide CommScope Holding competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for CommScope Holding? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to CommScope Holding 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. CommScope Holding 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 CommScope Holding
What is a Organization for CommScope Holding? Defining Organization in VRIO
Even if the CommScope Holding 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 CommScope Holding 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 |
---|---|---|---|---|---|
CommScope Holding 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 CommScope Holding | CommScope Holding is leveraging the customer loyalty to good effect | Provide CommScope Holding medium term competitive advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of CommScope Holding | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Marketing Expertise within CommScope Holding | 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 CommScope Holding are often matched by competitors | Yes, CommScope Holding is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Leadership Team at CommScope Holding | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Alignment of Activities with CommScope Holding 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 |
Financial Resources of CommScope Holding | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | CommScope Holding has reasonably sound financial position | CommScope Holding has relatively sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that CommScope Holding 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for CommScope Holding to thwart competition | Yes, IPR and other rights are rare and competition of CommScope Holding 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 |
Brand Positioning of CommScope Holding 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 |
Customer Community of CommScope Holding | Yes, as customers are co-creating products | Yes, the CommScope Holding has able to build a special relationship with its customers | It is very difficult for CommScope Holding competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on CommScope Holding customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for CommScope Holding - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and CommScope Holding 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 |
Global and Local Presence of CommScope Holding | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of CommScope Holding but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Sales Force and Channel Management of CommScope Holding | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide CommScope Holding sustainable competitive advantage. Potential is certainly there. |
Brand awareness of CommScope Holding products and services | Yes, the brand awareness of CommScope Holding products are high | Yes, CommScope Holding has one of the leading brand in the industry | No | CommScope Holding has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
CommScope Holding 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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