Tempur Sealy International 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 Tempur Sealy International to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Tempur Sealy International? Defining Valuable in VRIO

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

What are Rare Resources for Tempur Sealy International? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Tempur Sealy International? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Tempur Sealy International 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. Tempur Sealy International 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 Tempur Sealy International

What is a Organization for Tempur Sealy International? Defining Organization in VRIO

Even if the Tempur Sealy International 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 Tempur Sealy International 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 Tempur Sealy International to thwart competition	Yes, IPR and other rights are rare and competition of Tempur Sealy International 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
Brand Positioning of Tempur Sealy International 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Tempur Sealy International	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Supply Chain Network Flexibility of Tempur Sealy International	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Tempur Sealy International organizational structure and capabilities	Keeps the business running
Marketing Expertise within Tempur Sealy International	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 Tempur Sealy International are often matched by competitors	Yes, Tempur Sealy International is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Successful Implementation of Digital Strategy at Tempur Sealy International	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
Tempur Sealy International 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 Tempur Sealy International	Tempur Sealy International is leveraging the customer loyalty to good effect	Provide Tempur Sealy International medium term competitive advantage
Opportunities in the Adjacent Industries that Tempur Sealy International 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Tempur Sealy International 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 Tempur Sealy International	To a large extent yes	Providing Strong Competitive Advantage
Track Record of Leadership Team at Tempur Sealy International	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Brand awareness of Tempur Sealy International products and services	Yes, the brand awareness of Tempur Sealy International products are high	Yes, Tempur Sealy International has one of the leading brand in the industry	No	Tempur Sealy International has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Sales Force and Channel Management of Tempur Sealy International	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Tempur Sealy International sustainable competitive advantage. Potential is certainly there.
Customer Community of Tempur Sealy International	Yes, as customers are co-creating products	Yes, the Tempur Sealy International has able to build a special relationship with its customers	It is very difficult for Tempur Sealy International competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Tempur Sealy International customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps Tempur Sealy International in delivering lower costs	No	Can be imitated by competitors of Tempur Sealy International but it is difficult	Yes	Medium to Long Term Competitive Advantage

Tempur Sealy International SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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