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Brinks 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 Brinks to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Brinks? Defining Valuable in VRIO
A resource or capability is considered valuable for Brinks , if it allows the
Brinks to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Brinks to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Brinks.
What are Rare Resources for Brinks? Defining Rare in VRIO
In an industry that Brinks operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Brinks require rare resources to compete in the industry. If Brinks don’t have rare resources that are required to succeed in the industry then Brinks won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Brinks competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Brinks? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Brinks 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. Brinks 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 Brinks
What is a Organization for Brinks? Defining Organization in VRIO
Even if the Brinks 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 Brinks 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 |
---|---|---|---|---|---|
Brand Positioning of Brinks 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 |
Brinks 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 Brinks | Brinks is leveraging the customer loyalty to good effect | Provide Brinks medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of Brinks | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Brinks 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 Brinks | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Brinks retail strategy | Yes, Brinks has strong relationship with retailers and wholesalers | Yes, Brinks 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 Brinks | Yes, as customers are co-creating products | Yes, the Brinks has able to build a special relationship with its customers | It is very difficult for Brinks competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Brinks customers community ecosystem | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Track Record of Leadership Team at Brinks | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Brinks products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that Brinks 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 |
Access to Cheap Capital for Brinks | Yes, as a leading player in the industry and current macro economic conditions, Brinks has access to cheap capital | No | Can be imitated by the competitors of Brinks | Not been totally exploited | Not significant in creating competitive advantage |
Supply Chain Network Flexibility of Brinks | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Brinks organizational structure and capabilities | Keeps the business running |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Brinks | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Brinks operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Brinks is successful at it | Providing Strong Competitive Advantage |
Brinks 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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