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Continental Resources 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 Continental Resources to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Continental Resources? Defining Valuable in VRIO
A resource or capability is considered valuable for Continental Resources , if it allows the
Continental Resources to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Continental Resources to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Continental Resources.
What are Rare Resources for Continental Resources? Defining Rare in VRIO
In an industry that Continental Resources operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Continental Resources require rare resources to compete in the industry. If Continental Resources don’t have rare resources that are required to succeed in the industry then Continental Resources won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Continental Resources competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Continental Resources? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Continental Resources 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. Continental Resources 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 Continental Resources
What is a Organization for Continental Resources? Defining Organization in VRIO
Even if the Continental Resources 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 Continental Resources 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 |
---|---|---|---|---|---|
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Continental Resources dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that Continental Resources 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 |
Continental Resources 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 Continental Resources | Continental Resources is leveraging the customer loyalty to good effect | Provide Continental Resources medium term competitive advantage |
Opportunities in the E-Commerce Space for Continental Resources - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Continental Resources 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Continental Resources in delivering lower costs | No | Can be imitated by competitors of Continental Resources but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Global and Local Presence of Continental Resources | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Continental Resources but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Continental Resources to thwart competition | Yes, IPR and other rights are rare and competition of Continental Resources 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 Continental Resources | 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 |
Customer Community of Continental Resources | Yes, as customers are co-creating products | Yes, the Continental Resources has able to build a special relationship with its customers | It is very difficult for Continental Resources competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Continental Resources customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Continental Resources 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Continental Resources 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 Continental Resources | To a large extent yes | Providing Strong Competitive Advantage |
Brand Positioning of Continental Resources 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Continental Resources operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Continental Resources is successful at it | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Continental Resources | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Continental Resources 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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