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

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What is a Valuable Resource for Carlisle? Defining Valuable in VRIO

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

What are Rare Resources for Carlisle? Defining Rare in VRIO

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

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

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

What is a Organization for Carlisle? Defining Organization in VRIO

Even if the Carlisle 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 Carlisle 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
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Carlisle operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Carlisle is successful at it	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Carlisle	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Carlisle organizational structure and capabilities	Keeps the business running
Global and Local Presence of Carlisle	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Carlisle but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Brand Positioning of Carlisle 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
Opportunities in the E-Commerce Space for Carlisle - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Carlisle 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, Carlisle 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 Carlisle	To a large extent yes	Providing Strong Competitive Advantage
Opportunities in the Adjacent Industries that Carlisle 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
Marketing Expertise within Carlisle	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 Carlisle are often matched by competitors	Yes, Carlisle is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Carlisle	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Financial Resources of Carlisle	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Carlisle has reasonably sound financial position	Carlisle has relatively sustainable Competitive Advantage
Track Record of Leadership Team at Carlisle	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Brand awareness of Carlisle products and services	Yes, the brand awareness of Carlisle products are high	Yes, Carlisle has one of the leading brand in the industry	No	Carlisle has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Carlisle 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 Carlisle	Carlisle is leveraging the customer loyalty to good effect	Provide Carlisle medium term competitive advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Carlisle in delivering lower costs	No	Can be imitated by competitors of Carlisle but it is difficult	Yes	Medium to Long Term Competitive Advantage

Carlisle 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