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Taylor Morrison Home 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 Taylor Morrison Home to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Taylor Morrison Home? Defining Valuable in VRIO
A resource or capability is considered valuable for Taylor Morrison Home , if it allows the
Taylor Morrison Home to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Taylor Morrison Home to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Taylor Morrison Home.
What are Rare Resources for Taylor Morrison Home? Defining Rare in VRIO
In an industry that Taylor Morrison Home operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Taylor Morrison Home require rare resources to compete in the industry. If Taylor Morrison Home don’t have rare resources that are required to succeed in the industry then Taylor Morrison Home won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Taylor Morrison Home competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Taylor Morrison Home? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Taylor Morrison Home 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. Taylor Morrison Home 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 Taylor Morrison Home
What is a Organization for Taylor Morrison Home? Defining Organization in VRIO
Even if the Taylor Morrison Home 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 Taylor Morrison Home 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 |
---|---|---|---|---|---|
Successful Implementation of Digital Strategy at Taylor Morrison Home | 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Taylor Morrison Home in delivering lower costs | No | Can be imitated by competitors of Taylor Morrison Home but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Taylor Morrison Home dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Supply Chain Network Flexibility of Taylor Morrison Home | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Taylor Morrison Home organizational structure and capabilities | Keeps the business running |
Brand awareness of Taylor Morrison Home products and services | Yes, the brand awareness of Taylor Morrison Home products are high | Yes, Taylor Morrison Home has one of the leading brand in the industry | No | Taylor Morrison Home has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Financial Resources of Taylor Morrison Home | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Taylor Morrison Home has reasonably sound financial position | Taylor Morrison Home has relatively sustainable Competitive Advantage |
Customer Community of Taylor Morrison Home | Yes, as customers are co-creating products | Yes, the Taylor Morrison Home has able to build a special relationship with its customers | It is very difficult for Taylor Morrison Home competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Taylor Morrison Home 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Taylor Morrison Home | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Taylor Morrison Home to thwart competition | Yes, IPR and other rights are rare and competition of Taylor Morrison Home 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 |
Access to Cheap Capital for Taylor Morrison Home | Yes, as a leading player in the industry and current macro economic conditions, Taylor Morrison Home has access to cheap capital | No | Can be imitated by the competitors of Taylor Morrison Home | Not been totally exploited | Not significant in creating competitive advantage |
Sales Force and Channel Management of Taylor Morrison Home | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Taylor Morrison Home sustainable competitive advantage. Potential is certainly there. |
Pricing Strategies of Taylor Morrison Home | Yes, Taylor Morrison Home has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Taylor Morrison Home with a Temporary Competitive Advantage |
Position among Retailers and Wholesalers – Taylor Morrison Home retail strategy | Yes, Taylor Morrison Home has strong relationship with retailers and wholesalers | Yes, Taylor Morrison Home has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Taylor Morrison Home 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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