Envision Healthcare 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 Envision Healthcare to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Envision Healthcare? Defining Valuable in VRIO

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

What are Rare Resources for Envision Healthcare? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Envision Healthcare? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Envision Healthcare 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. Envision Healthcare 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 Envision Healthcare

What is a Organization for Envision Healthcare? Defining Organization in VRIO

Even if the Envision Healthcare 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 Envision Healthcare 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
Ability to Attract Talent in Various Local & Global Markets	Yes, Envision Healthcare 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 Envision Healthcare	To a large extent yes	Providing Strong Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Envision Healthcare	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
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Envision Healthcare dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Envision Healthcare	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Position among Retailers and Wholesalers – Envision Healthcare retail strategy	Yes, Envision Healthcare has strong relationship with retailers and wholesalers	Yes, Envision Healthcare has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Access to Cheap Capital for Envision Healthcare	Yes, as a leading player in the industry and current macro economic conditions, Envision Healthcare has access to cheap capital	No	Can be imitated by the competitors of Envision Healthcare	Not been totally exploited	Not significant in creating competitive advantage
Opportunities in the E-Commerce Space for Envision Healthcare - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Envision Healthcare 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
Brand Positioning of Envision Healthcare 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
Pricing Strategies of Envision Healthcare	Yes, Envision Healthcare has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Envision Healthcare with a Temporary Competitive Advantage
Financial Resources of Envision Healthcare	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Envision Healthcare has reasonably sound financial position	Envision Healthcare has relatively 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 Envision Healthcare operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Envision Healthcare is successful at it	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Envision Healthcare	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Envision Healthcare organizational structure and capabilities	Keeps the business running
Track Record of Leadership Team at Envision Healthcare	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 Envision Healthcare to thwart competition	Yes, IPR and other rights are rare and competition of Envision Healthcare 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

Envision Healthcare 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