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Noble Energy 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 Noble Energy to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Noble Energy? Defining Valuable in VRIO
A resource or capability is considered valuable for Noble Energy , if it allows the
Noble Energy to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Noble Energy to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Noble Energy.
What are Rare Resources for Noble Energy? Defining Rare in VRIO
In an industry that Noble Energy operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Noble Energy require rare resources to compete in the industry. If Noble Energy don’t have rare resources that are required to succeed in the industry then Noble Energy won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Noble Energy competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Noble Energy? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Noble Energy 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. Noble Energy 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 Noble Energy
What is a Organization for Noble Energy? Defining Organization in VRIO
Even if the Noble Energy 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 Noble Energy 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of Noble Energy | 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 |
Alignment of Activities with Noble Energy 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 |
Opportunities in the E-Commerce Space for Noble Energy - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Noble Energy 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Noble Energy in delivering lower costs | No | Can be imitated by competitors of Noble Energy but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Brand awareness of Noble Energy products and services | Yes, the brand awareness of Noble Energy products are high | Yes, Noble Energy has one of the leading brand in the industry | No | Noble Energy has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Pricing Strategies of Noble Energy | Yes, Noble Energy has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Noble Energy with a Temporary Competitive Advantage |
Marketing Expertise within Noble Energy | 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 Noble Energy are often matched by competitors | Yes, Noble Energy is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at Noble Energy | 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 |
Position among Retailers and Wholesalers – Noble Energy retail strategy | Yes, Noble Energy has strong relationship with retailers and wholesalers | Yes, Noble Energy has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Customer Community of Noble Energy | Yes, as customers are co-creating products | Yes, the Noble Energy has able to build a special relationship with its customers | It is very difficult for Noble Energy competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Noble Energy customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Noble Energy 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 Noble Energy | To a large extent yes | Providing Strong Competitive Advantage |
Access to Cheap Capital for Noble Energy | Yes, as a leading player in the industry and current macro economic conditions, Noble Energy has access to cheap capital | No | Can be imitated by the competitors of Noble Energy | Not been totally exploited | Not significant in creating competitive advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Noble Energy operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Noble Energy is successful at it | Providing Strong Competitive Advantage |
Noble Energy 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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