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Tyson Foods 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 Tyson Foods to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Tyson Foods? Defining Valuable in VRIO
A resource or capability is considered valuable for Tyson Foods , if it allows the
Tyson Foods to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Tyson Foods to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Tyson Foods.
What are Rare Resources for Tyson Foods? Defining Rare in VRIO
In an industry that Tyson Foods operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Tyson Foods require rare resources to compete in the industry. If Tyson Foods don’t have rare resources that are required to succeed in the industry then Tyson Foods won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Tyson Foods competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Tyson Foods? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Tyson Foods 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. Tyson Foods 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 Tyson Foods
What is a Organization for Tyson Foods? Defining Organization in VRIO
Even if the Tyson Foods 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 Tyson Foods 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Tyson Foods to thwart competition | Yes, IPR and other rights are rare and competition of Tyson Foods 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 |
Financial Resources of Tyson Foods | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Tyson Foods has reasonably sound financial position | Tyson Foods has relatively sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Tyson Foods retail strategy | Yes, Tyson Foods has strong relationship with retailers and wholesalers | Yes, Tyson Foods has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities for Brand Extensions for Tyson Foods 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Tyson Foods in delivering lower costs | No | Can be imitated by competitors of Tyson Foods but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Tyson Foods operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Tyson Foods is successful at it | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Tyson Foods | 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 |
Supply Chain Network Flexibility of Tyson Foods | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Tyson Foods organizational structure and capabilities | Keeps the business running |
Track Record of Leadership Team at Tyson Foods | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Tyson Foods | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Tyson Foods but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Brand awareness of Tyson Foods products and services | Yes, the brand awareness of Tyson Foods products are high | Yes, Tyson Foods has one of the leading brand in the industry | No | Tyson Foods has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Tyson Foods | 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 Tyson Foods are often matched by competitors | Yes, Tyson Foods is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Tyson Foods 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 Tyson Foods | Tyson Foods is leveraging the customer loyalty to good effect | Provide Tyson Foods medium term competitive advantage |
Tyson Foods 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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