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Cooper Tire & Rubber 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 Cooper Tire & Rubber to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Cooper Tire & Rubber? Defining Valuable in VRIO
A resource or capability is considered valuable for Cooper Tire & Rubber , if it allows the
Cooper Tire & Rubber to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Cooper Tire & Rubber to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Cooper Tire & Rubber.
What are Rare Resources for Cooper Tire & Rubber? Defining Rare in VRIO
In an industry that Cooper Tire & Rubber operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Cooper Tire & Rubber require rare resources to compete in the industry. If Cooper Tire & Rubber don’t have rare resources that are required to succeed in the industry then Cooper Tire & Rubber won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Cooper Tire & Rubber competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Cooper Tire & Rubber? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Cooper Tire & Rubber 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. Cooper Tire & Rubber 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 Cooper Tire & Rubber
What is a Organization for Cooper Tire & Rubber? Defining Organization in VRIO
Even if the Cooper Tire & Rubber 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 Cooper Tire & Rubber 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 |
---|---|---|---|---|---|
Supply Chain Network Flexibility of Cooper Tire & Rubber | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Cooper Tire & Rubber organizational structure and capabilities | Keeps the business running |
Financial Resources of Cooper Tire & Rubber | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Cooper Tire & Rubber has reasonably sound financial position | Cooper Tire & Rubber has relatively sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Cooper Tire & Rubber | 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 |
Marketing Expertise within Cooper Tire & Rubber | 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 Cooper Tire & Rubber are often matched by competitors | Yes, Cooper Tire & Rubber is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Cooper Tire & Rubber operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Cooper Tire & Rubber is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of Cooper Tire & Rubber 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Cooper Tire & Rubber 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 Cooper Tire & Rubber | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that Cooper Tire & Rubber 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 |
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 Cooper Tire & Rubber | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Cooper Tire & Rubber | 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 |
Sales Force and Channel Management of Cooper Tire & Rubber | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Cooper Tire & Rubber sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Cooper Tire & Rubber to thwart competition | Yes, IPR and other rights are rare and competition of Cooper Tire & Rubber 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 Cooper Tire & Rubber | Yes, as a leading player in the industry and current macro economic conditions, Cooper Tire & Rubber has access to cheap capital | No | Can be imitated by the competitors of Cooper Tire & Rubber | Not been totally exploited | Not significant in creating competitive advantage |
Cooper Tire & Rubber 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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