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

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What is a Valuable Resource for Puget Energy? Defining Valuable in VRIO

A resource or capability is considered valuable for Puget Energy , if it allows the Puget 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 Puget Energy to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Puget Energy.

What are Rare Resources for Puget Energy? Defining Rare in VRIO

In an industry that Puget Energy operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Puget Energy require rare resources to compete in the industry. If Puget Energy don’t have rare resources that are required to succeed in the industry then Puget Energy won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Puget 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 Puget Energy? Defining Inimitable in VRIO

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

What is a Organization for Puget Energy? Defining Organization in VRIO

Even if the Puget 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 Puget 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Pricing Strategies of Puget Energy	Yes, Puget 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 Puget Energy with a Temporary Competitive Advantage
Track Record of Leadership Team at Puget Energy	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Sales Force and Channel Management of Puget Energy	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Puget Energy sustainable competitive advantage. Potential is certainly there.
Access to Cheap Capital for Puget Energy	Yes, as a leading player in the industry and current macro economic conditions, Puget Energy has access to cheap capital	No	Can be imitated by the competitors of Puget Energy	Not been totally exploited	Not significant in creating competitive advantage
Alignment of Activities with Puget 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
Supply Chain Network Flexibility of Puget Energy	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Puget Energy organizational structure and capabilities	Keeps the business running
Brand Positioning of Puget Energy 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
Marketing Expertise within Puget 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 Puget Energy are often matched by competitors	Yes, Puget Energy is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Successful Implementation of Digital Strategy at Puget 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Puget 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 Puget Energy	To a large extent yes	Providing Strong Competitive Advantage
Puget Energy 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 Puget Energy	Puget Energy is leveraging the customer loyalty to good effect	Provide Puget Energy medium term competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Puget Energy dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Financial Resources of Puget Energy	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Puget Energy has reasonably sound financial position	Puget Energy has relatively sustainable Competitive Advantage

Puget 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