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Caleres 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 Caleres to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Caleres? Defining Valuable in VRIO
A resource or capability is considered valuable for Caleres , if it allows the
Caleres to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Caleres to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Caleres.
What are Rare Resources for Caleres? Defining Rare in VRIO
In an industry that Caleres operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Caleres require rare resources to compete in the industry. If Caleres don’t have rare resources that are required to succeed in the industry then Caleres won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Caleres competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Caleres? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Caleres 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. Caleres 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 Caleres
What is a Organization for Caleres? Defining Organization in VRIO
Even if the Caleres 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 Caleres 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 |
---|---|---|---|---|---|
Track Record of Leadership Team at Caleres | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Caleres | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Caleres but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Financial Resources of Caleres | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Caleres has reasonably sound financial position | Caleres has relatively sustainable Competitive Advantage |
Brand Positioning of Caleres 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 |
Marketing Expertise within Caleres | 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 Caleres are often matched by competitors | Yes, Caleres is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at Caleres | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Caleres | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Customer Community of Caleres | Yes, as customers are co-creating products | Yes, the Caleres has able to build a special relationship with its customers | It is very difficult for Caleres competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Caleres customers community ecosystem | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Opportunities in the E-Commerce Space for Caleres - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Caleres 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 Caleres in delivering lower costs | No | Can be imitated by competitors of Caleres but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Alignment of Activities with Caleres 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 Caleres | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Caleres sustainable competitive advantage. Potential is certainly there. |
Pricing Strategies of Caleres | Yes, Caleres has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Caleres with a Temporary Competitive Advantage |
Caleres 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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