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WABCO 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 WABCO Holdings to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for WABCO Holdings? Defining Valuable in VRIO
A resource or capability is considered valuable for WABCO Holdings , if it allows the
WABCO 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 WABCO Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for WABCO Holdings.
What are Rare Resources for WABCO Holdings? Defining Rare in VRIO
In an industry that WABCO Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. WABCO Holdings require rare resources to compete in the industry. If WABCO Holdings don’t have rare resources that are required to succeed in the industry then WABCO Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide WABCO 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 WABCO Holdings? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to WABCO 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. WABCO 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 WABCO Holdings
What is a Organization for WABCO Holdings? Defining Organization in VRIO
Even if the WABCO 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 WABCO 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 |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
WABCO Holdings 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 WABCO Holdings | WABCO Holdings is leveraging the customer loyalty to good effect | Provide WABCO Holdings medium term competitive advantage |
Supply Chain Network Flexibility of WABCO Holdings | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by WABCO Holdings organizational structure and capabilities | Keeps the business running |
Product Portfolio and Synergy among Various Product Lines of WABCO Holdings | 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 WABCO Holdings | Yes, as customers are co-creating products | Yes, the WABCO Holdings has able to build a special relationship with its customers | It is very difficult for WABCO Holdings competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on WABCO Holdings customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for WABCO Holdings - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and WABCO 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 |
Brand awareness of WABCO Holdings products and services | Yes, the brand awareness of WABCO Holdings products are high | Yes, WABCO Holdings has one of the leading brand in the industry | No | WABCO Holdings has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, WABCO 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 WABCO Holdings | To a large extent yes | Providing Strong Competitive Advantage |
Track Record of Leadership Team at WABCO Holdings | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at WABCO 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 |
Marketing Expertise within WABCO 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 WABCO Holdings are often matched by competitors | Yes, WABCO Holdings is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of WABCO Holdings | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Brand Positioning of WABCO 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that WABCO Holdings operates in | No, none of the competitors so far has able to imitate this expertise | Yes, WABCO Holdings is successful at it | Providing Strong Competitive Advantage |
WABCO 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
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