IMS Health Holdings 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 IMS Health Holdings to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for IMS Health Holdings? Defining Valuable in VRIO

A resource or capability is considered valuable for IMS Health Holdings , if it allows the IMS Health Holdings to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow IMS Health Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for IMS Health Holdings.

What are Rare Resources for IMS Health Holdings? Defining Rare in VRIO

In an industry that IMS Health Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. IMS Health Holdings require rare resources to compete in the industry. If IMS Health Holdings don’t have rare resources that are required to succeed in the industry then IMS Health Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide IMS Health Holdings competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for IMS Health Holdings? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to IMS Health Holdings 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. IMS Health Holdings 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 IMS Health Holdings

What is a Organization for IMS Health Holdings? Defining Organization in VRIO

Even if the IMS Health Holdings 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 IMS Health Holdings 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
Financial Resources of IMS Health Holdings	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	IMS Health Holdings has reasonably sound financial position	IMS Health Holdings has relatively sustainable Competitive Advantage
Brand Positioning of IMS Health Holdings 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
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of IMS Health Holdings	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps IMS Health Holdings in delivering lower costs	No	Can be imitated by competitors of IMS Health Holdings but it is difficult	Yes	Medium to Long Term Competitive Advantage
Marketing Expertise within IMS Health Holdings	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 IMS Health Holdings are often matched by competitors	Yes, IMS Health Holdings is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Sales Force and Channel Management of IMS Health Holdings	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide IMS Health Holdings sustainable competitive advantage. Potential is certainly there.
Track Record of Leadership Team at IMS Health Holdings	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for IMS Health Holdings - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and IMS Health Holdings can exploit the emerging opportunities	No, most of the competitors are investing in IT to enter the space	The AI and inhouse analytics can be difficult to imitate	It is just the start for the organization	In the long run it can provide sustainable competitive advantage
Pricing Strategies of IMS Health Holdings	Yes, IMS Health Holdings has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide IMS Health Holdings with a Temporary Competitive Advantage
Customer Community of IMS Health Holdings	Yes, as customers are co-creating products	Yes, the IMS Health Holdings has able to build a special relationship with its customers	It is very difficult for IMS Health Holdings competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on IMS Health Holdings customers community ecosystem	Providing Strong Competitive Advantage
Brand awareness of IMS Health Holdings products and services	Yes, the brand awareness of IMS Health Holdings products are high	Yes, IMS Health Holdings has one of the leading brand in the industry	No	IMS Health Holdings has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, IMS Health Holdings 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 IMS Health Holdings	To a large extent yes	Providing Strong Competitive Advantage
Successful Implementation of Digital Strategy at IMS Health Holdings	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
Position among Retailers and Wholesalers – IMS Health Holdings retail strategy	Yes, IMS Health Holdings has strong relationship with retailers and wholesalers	Yes, IMS Health Holdings has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage

IMS Health Holdings 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