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National General 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 National General Holdings to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for National General Holdings? Defining Valuable in VRIO
A resource or capability is considered valuable for National General Holdings , if it allows the
National General 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 National General Holdings to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for National General Holdings.
What are Rare Resources for National General Holdings? Defining Rare in VRIO
In an industry that National General Holdings operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. National General Holdings require rare resources to compete in the industry. If National General Holdings don’t have rare resources that are required to succeed in the industry then National General Holdings won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide National General 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 National General Holdings? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to National General 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. National General 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 National General Holdings
What is a Organization for National General Holdings? Defining Organization in VRIO
Even if the National General 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 National General 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 |
---|---|---|---|---|---|
Opportunities for Brand Extensions for National General Holdings products | Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Global and Local Presence of National General Holdings | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of National General Holdings but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Brand Positioning of National General 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 |
Access to Cheap Capital for National General Holdings | Yes, as a leading player in the industry and current macro economic conditions, National General Holdings has access to cheap capital | No | Can be imitated by the competitors of National General Holdings | Not been totally exploited | Not significant in creating competitive advantage |
Brand awareness of National General Holdings products and services | Yes, the brand awareness of National General Holdings products are high | Yes, National General Holdings has one of the leading brand in the industry | No | National General Holdings has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Supply Chain Network Flexibility of National General Holdings | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by National General Holdings organizational structure and capabilities | Keeps the business running |
Track Record of Leadership Team at National General Holdings | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of National General 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 |
Marketing Expertise within National General 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 National General Holdings are often matched by competitors | Yes, National General Holdings is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with National General Holdings dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Pricing Strategies of National General Holdings | Yes, National General Holdings has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide National General Holdings with a Temporary Competitive Advantage |
Customer Community of National General Holdings | Yes, as customers are co-creating products | Yes, the National General Holdings has able to build a special relationship with its customers | It is very difficult for National General Holdings competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on National General Holdings customers community ecosystem | Providing Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, National General 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 National General Holdings | To a large extent yes | Providing Strong Competitive Advantage |
Opportunities in the Adjacent Industries that National General Holdings 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 |
National General 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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