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

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

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

What are Rare Resources for NBTY? Defining Rare in VRIO

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

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

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

What is a Organization for NBTY? Defining Organization in VRIO

Even if the NBTY 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 NBTY 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, NBTY 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 NBTY	To a large extent yes	Providing Strong Competitive Advantage
Sales Force and Channel Management of NBTY	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide NBTY sustainable competitive advantage. Potential is certainly there.
Access to Cheap Capital for NBTY	Yes, as a leading player in the industry and current macro economic conditions, NBTY has access to cheap capital	No	Can be imitated by the competitors of NBTY	Not been totally exploited	Not significant in creating competitive advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for NBTY to thwart competition	Yes, IPR and other rights are rare and competition of NBTY 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 NBTY	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	NBTY has reasonably sound financial position	NBTY has relatively sustainable Competitive Advantage
Customer Community of NBTY	Yes, as customers are co-creating products	Yes, the NBTY has able to build a special relationship with its customers	It is very difficult for NBTY competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on NBTY customers community ecosystem	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at NBTY	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
Opportunities in the Adjacent Industries that NBTY 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 NBTY operates in	No, none of the competitors so far has able to imitate this expertise	Yes, NBTY is successful at it	Providing Strong Competitive Advantage
Pricing Strategies of NBTY	Yes, NBTY has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide NBTY with a Temporary Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with NBTY dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Brand awareness of NBTY products and services	Yes, the brand awareness of NBTY products are high	Yes, NBTY has one of the leading brand in the industry	No	NBTY has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Marketing Expertise within NBTY	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 NBTY are often matched by competitors	Yes, NBTY is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Alignment of Activities with NBTY 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

NBTY 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