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Beacon Roofing Supply 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 Beacon Roofing Supply to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Beacon Roofing Supply? Defining Valuable in VRIO
A resource or capability is considered valuable for Beacon Roofing Supply , if it allows the
Beacon Roofing Supply to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Beacon Roofing Supply to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Beacon Roofing Supply.
What are Rare Resources for Beacon Roofing Supply? Defining Rare in VRIO
In an industry that Beacon Roofing Supply operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Beacon Roofing Supply require rare resources to compete in the industry. If Beacon Roofing Supply don’t have rare resources that are required to succeed in the industry then Beacon Roofing Supply won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Beacon Roofing Supply competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Beacon Roofing Supply? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Beacon Roofing Supply 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. Beacon Roofing Supply 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 Beacon Roofing Supply
What is a Organization for Beacon Roofing Supply? Defining Organization in VRIO
Even if the Beacon Roofing Supply 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 Beacon Roofing Supply 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 |
---|---|---|---|---|---|
Distribution and Logistics Costs Competitiveness | Yes, as it helps Beacon Roofing Supply in delivering lower costs | No | Can be imitated by competitors of Beacon Roofing Supply but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Financial Resources of Beacon Roofing Supply | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Beacon Roofing Supply has reasonably sound financial position | Beacon Roofing Supply has relatively sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Beacon Roofing Supply | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Supply Chain Network Flexibility of Beacon Roofing Supply | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Beacon Roofing Supply organizational structure and capabilities | Keeps the business running |
Opportunities in the Adjacent Industries that Beacon Roofing Supply 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Beacon Roofing Supply to thwart competition | Yes, IPR and other rights are rare and competition of Beacon Roofing Supply 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 |
Successful Implementation of Digital Strategy at Beacon Roofing Supply | 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 |
Customer Community of Beacon Roofing Supply | Yes, as customers are co-creating products | Yes, the Beacon Roofing Supply has able to build a special relationship with its customers | It is very difficult for Beacon Roofing Supply competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Beacon Roofing Supply customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Beacon Roofing Supply 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 Beacon Roofing Supply | To a large extent yes | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Beacon Roofing Supply dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Opportunities in the E-Commerce Space for Beacon Roofing Supply - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Beacon Roofing Supply 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 |
Position among Retailers and Wholesalers – Beacon Roofing Supply retail strategy | Yes, Beacon Roofing Supply has strong relationship with retailers and wholesalers | Yes, Beacon Roofing Supply has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Pricing Strategies of Beacon Roofing Supply | Yes, Beacon Roofing Supply has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Beacon Roofing Supply with a Temporary Competitive Advantage |
Beacon Roofing Supply 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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