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Crestwood Equity Partners 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 Crestwood Equity Partners to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Crestwood Equity Partners? Defining Valuable in VRIO
A resource or capability is considered valuable for Crestwood Equity Partners , if it allows the
Crestwood Equity Partners to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Crestwood Equity Partners to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Crestwood Equity Partners.
What are Rare Resources for Crestwood Equity Partners? Defining Rare in VRIO
In an industry that Crestwood Equity Partners operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Crestwood Equity Partners require rare resources to compete in the industry. If Crestwood Equity Partners don’t have rare resources that are required to succeed in the industry then Crestwood Equity Partners won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Crestwood Equity Partners competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Crestwood Equity Partners? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Crestwood Equity Partners 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. Crestwood Equity Partners 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 Crestwood Equity Partners
What is a Organization for Crestwood Equity Partners? Defining Organization in VRIO
Even if the Crestwood Equity Partners 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 Crestwood Equity Partners 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 |
---|---|---|---|---|---|
Global and Local Presence of Crestwood Equity Partners | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Crestwood Equity Partners but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Track Record of Leadership Team at Crestwood Equity Partners | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Sales Force and Channel Management of Crestwood Equity Partners | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Crestwood Equity Partners sustainable competitive advantage. Potential is certainly there. |
Product Portfolio and Synergy among Various Product Lines of Crestwood Equity Partners | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Crestwood Equity Partners | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of Crestwood Equity Partners 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 Crestwood Equity Partners | Yes, Crestwood Equity Partners has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Crestwood Equity Partners with a Temporary Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Crestwood Equity Partners in delivering lower costs | No | Can be imitated by competitors of Crestwood Equity Partners but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities in the E-Commerce Space for Crestwood Equity Partners - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Crestwood Equity Partners 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 |
Successful Implementation of Digital Strategy at Crestwood Equity Partners | 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 |
Marketing Expertise within Crestwood Equity Partners | 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 Crestwood Equity Partners are often matched by competitors | Yes, Crestwood Equity Partners is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Crestwood Equity Partners 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 Crestwood Equity Partners | To a large extent yes | Providing Strong Competitive Advantage |
Access to Cheap Capital for Crestwood Equity Partners | Yes, as a leading player in the industry and current macro economic conditions, Crestwood Equity Partners has access to cheap capital | No | Can be imitated by the competitors of Crestwood Equity Partners | Not been totally exploited | Not significant in creating competitive advantage |
Supply Chain Network Flexibility of Crestwood Equity Partners | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Crestwood Equity Partners organizational structure and capabilities | Keeps the business running |
Crestwood Equity Partners 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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