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Resolute Forest Products 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 Resolute Forest Products to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Resolute Forest Products? Defining Valuable in VRIO
A resource or capability is considered valuable for Resolute Forest Products , if it allows the
Resolute Forest Products to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Resolute Forest Products to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Resolute Forest Products.
What are Rare Resources for Resolute Forest Products? Defining Rare in VRIO
In an industry that Resolute Forest Products operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Resolute Forest Products require rare resources to compete in the industry. If Resolute Forest Products don’t have rare resources that are required to succeed in the industry then Resolute Forest Products won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Resolute Forest Products competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Resolute Forest Products? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Resolute Forest Products 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. Resolute Forest Products 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 Resolute Forest Products
What is a Organization for Resolute Forest Products? Defining Organization in VRIO
Even if the Resolute Forest Products 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 Resolute Forest Products 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 |
---|---|---|---|---|---|
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Resolute Forest Products to thwart competition | Yes, IPR and other rights are rare and competition of Resolute Forest Products 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 |
Pricing Strategies of Resolute Forest Products | Yes, Resolute Forest Products has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Resolute Forest Products with a Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Resolute Forest Products 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 Resolute Forest Products | To a large extent yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Resolute Forest Products | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Global and Local Presence of Resolute Forest Products | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Resolute Forest Products but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Customer Community of Resolute Forest Products | Yes, as customers are co-creating products | Yes, the Resolute Forest Products has able to build a special relationship with its customers | It is very difficult for Resolute Forest Products competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Resolute Forest Products customers community ecosystem | Providing Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Resolute Forest Products operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Resolute Forest Products is successful at it | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Resolute Forest Products | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Resolute Forest Products organizational structure and capabilities | Keeps the business running |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Sales Force and Channel Management of Resolute Forest Products | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Resolute Forest Products sustainable competitive advantage. Potential is certainly there. |
Product Portfolio and Synergy among Various Product Lines of Resolute Forest Products | 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Resolute Forest Products in delivering lower costs | No | Can be imitated by competitors of Resolute Forest Products but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities in the Adjacent Industries that Resolute Forest Products 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 Resolute Forest Products | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Resolute Forest Products 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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