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Cooper-Standard Holdings 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 Cooper-Standard Holdings to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Cooper-Standard Holdings? Defining Valuable in VRIO
A resource or capability is considered valuable for Cooper-Standard Holdings , if it allows the
Cooper-Standard Holdings to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Cooper-Standard Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Cooper-Standard Holdings.
What are Rare Resources for Cooper-Standard Holdings? Defining Rare in VRIO
In an industry that Cooper-Standard Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Cooper-Standard Holdings require rare resources to compete in the industry. If Cooper-Standard Holdings don’t have rare resources that are required to succeed in the industry then Cooper-Standard Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Cooper-Standard Holdings competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Cooper-Standard Holdings? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Cooper-Standard Holdings 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. Cooper-Standard Holdings 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 Cooper-Standard Holdings
What is a Organization for Cooper-Standard Holdings? Defining Organization in VRIO
Even if the Cooper-Standard Holdings 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 Cooper-Standard Holdings 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 |
---|---|---|---|---|---|
Ability to Attract Talent in Various Local & Global Markets | Yes, Cooper-Standard Holdings 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 Cooper-Standard Holdings | To a large extent yes | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Cooper-Standard Holdings to thwart competition | Yes, IPR and other rights are rare and competition of Cooper-Standard Holdings 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Financial Resources of Cooper-Standard Holdings | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Cooper-Standard Holdings has reasonably sound financial position | Cooper-Standard Holdings has relatively sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Cooper-Standard Holdings | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Cooper-Standard Holdings | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Global and Local Presence of Cooper-Standard Holdings | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Cooper-Standard Holdings but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Cooper-Standard Holdings - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Cooper-Standard Holdings 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 |
Supply Chain Network Flexibility of Cooper-Standard Holdings | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Cooper-Standard Holdings organizational structure and capabilities | Keeps the business running |
Alignment of Activities with Cooper-Standard Holdings 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 |
Customer Community of Cooper-Standard Holdings | Yes, as customers are co-creating products | Yes, the Cooper-Standard Holdings has able to build a special relationship with its customers | It is very difficult for Cooper-Standard Holdings competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Cooper-Standard Holdings customers community ecosystem | Providing Strong Competitive Advantage |
Sales Force and Channel Management of Cooper-Standard Holdings | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Cooper-Standard Holdings sustainable competitive advantage. Potential is certainly there. |
Brand awareness of Cooper-Standard Holdings products and services | Yes, the brand awareness of Cooper-Standard Holdings products are high | Yes, Cooper-Standard Holdings has one of the leading brand in the industry | No | Cooper-Standard Holdings has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Cooper-Standard Holdings in delivering lower costs | No | Can be imitated by competitors of Cooper-Standard Holdings but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Cooper-Standard Holdings 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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