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Service Corp. 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 Service Corp. International to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Service Corp. International? Defining Valuable in VRIO
A resource or capability is considered valuable for Service Corp. International , if it allows the
Service Corp. 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 Service Corp. International to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Service Corp. International.
What are Rare Resources for Service Corp. International? Defining Rare in VRIO
In an industry that Service Corp. International operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Service Corp. International require rare resources to compete in the industry. If Service Corp. International don’t have rare resources that are required to succeed in the industry then Service Corp. International won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Service Corp. 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 Service Corp. International? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Service Corp. 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. Service Corp. 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 Service Corp. International
What is a Organization for Service Corp. International? Defining Organization in VRIO
Even if the Service Corp. 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 Service Corp. 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 |
---|---|---|---|---|---|
Brand awareness of Service Corp. International products and services | Yes, the brand awareness of Service Corp. International products are high | Yes, Service Corp. International has one of the leading brand in the industry | No | Service Corp. International has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Brand Positioning of Service Corp. 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 |
Customer Community of Service Corp. International | Yes, as customers are co-creating products | Yes, the Service Corp. International has able to build a special relationship with its customers | It is very difficult for Service Corp. International competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Service Corp. International customers community ecosystem | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Service Corp. International | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Service Corp. International to thwart competition | Yes, IPR and other rights are rare and competition of Service Corp. 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 |
Product Portfolio and Synergy among Various Product Lines of Service Corp. International | 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 |
Sales Force and Channel Management of Service Corp. International | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Service Corp. International sustainable competitive advantage. Potential is certainly there. |
Ability to Attract Talent in Various Local & Global Markets | Yes, Service Corp. 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 Service Corp. International | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – Service Corp. International retail strategy | Yes, Service Corp. International has strong relationship with retailers and wholesalers | Yes, Service Corp. International has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Service Corp. International operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Service Corp. International is successful at it | Providing Strong Competitive Advantage |
Alignment of Activities with Service Corp. International 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 |
Service Corp. 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 Service Corp. International | Service Corp. International is leveraging the customer loyalty to good effect | Provide Service Corp. International medium term competitive advantage |
Opportunities for Brand Extensions for Service Corp. International 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 |
Financial Resources of Service Corp. International | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Service Corp. International has reasonably sound financial position | Service Corp. International has relatively sustainable Competitive Advantage |
Service Corp. International 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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