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Alere 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 Alere to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Alere? Defining Valuable in VRIO
A resource or capability is considered valuable for Alere , if it allows the
Alere to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Alere to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Alere.
What are Rare Resources for Alere? Defining Rare in VRIO
In an industry that Alere operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Alere require rare resources to compete in the industry. If Alere don’t have rare resources that are required to succeed in the industry then Alere won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Alere competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Alere? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Alere 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. Alere 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 Alere
What is a Organization for Alere? Defining Organization in VRIO
Even if the Alere 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 Alere 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 |
---|---|---|---|---|---|
Product Portfolio and Synergy among Various Product Lines of Alere | 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 |
Opportunities in the E-Commerce Space for Alere - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Alere 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 |
Alignment of Activities with Alere Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Sales Force and Channel Management of Alere | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Alere sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Alere to thwart competition | Yes, IPR and other rights are rare and competition of Alere 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 |
Brand awareness of Alere products and services | Yes, the brand awareness of Alere products are high | Yes, Alere has one of the leading brand in the industry | No | Alere has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Access to Cheap Capital for Alere | Yes, as a leading player in the industry and current macro economic conditions, Alere has access to cheap capital | No | Can be imitated by the competitors of Alere | Not been totally exploited | Not significant in creating competitive advantage |
Pricing Strategies of Alere | Yes, Alere has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Alere with a Temporary Competitive Advantage |
Supply Chain Network Flexibility of Alere | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Alere organizational structure and capabilities | Keeps the business running |
Brand Positioning of Alere 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 |
Global and Local Presence of Alere | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Alere but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Alere | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Alere in delivering lower costs | No | Can be imitated by competitors of Alere but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Alere 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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