Allegheny Technologies 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 Allegheny Technologies to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Allegheny Technologies? Defining Valuable in VRIO

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

What are Rare Resources for Allegheny Technologies? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Allegheny Technologies? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Allegheny Technologies 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. Allegheny Technologies 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 Allegheny Technologies

What is a Organization for Allegheny Technologies? Defining Organization in VRIO

Even if the Allegheny Technologies 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 Allegheny Technologies 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 – Allegheny Technologies retail strategy	Yes, Allegheny Technologies has strong relationship with retailers and wholesalers	Yes, Allegheny Technologies has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Track Record of Leadership Team at Allegheny Technologies	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, Allegheny Technologies 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 Allegheny Technologies	To a large extent yes	Providing Strong Competitive Advantage
Brand awareness of Allegheny Technologies products and services	Yes, the brand awareness of Allegheny Technologies products are high	Yes, Allegheny Technologies has one of the leading brand in the industry	No	Allegheny Technologies has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Allegheny Technologies - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Allegheny Technologies 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
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Allegheny Technologies to thwart competition	Yes, IPR and other rights are rare and competition of Allegheny Technologies 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 for Brand Extensions for Allegheny Technologies 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
Marketing Expertise within Allegheny Technologies	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 Allegheny Technologies are often matched by competitors	Yes, Allegheny Technologies is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Opportunities in the Adjacent Industries that Allegheny Technologies 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 Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Allegheny Technologies operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Allegheny Technologies is successful at it	Providing Strong Competitive Advantage
Alignment of Activities with Allegheny Technologies 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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Allegheny Technologies dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Customer Community of Allegheny Technologies	Yes, as customers are co-creating products	Yes, the Allegheny Technologies has able to build a special relationship with its customers	It is very difficult for Allegheny Technologies competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Allegheny Technologies customers community ecosystem	Providing Strong Competitive Advantage
Sales Force and Channel Management of Allegheny Technologies	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Allegheny Technologies sustainable competitive advantage. Potential is certainly there.

Allegheny Technologies 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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