EnerSys 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 EnerSys to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for EnerSys? Defining Valuable in VRIO

A resource or capability is considered valuable for EnerSys , if it allows the EnerSys to exploit opportunities or negate threats emerging out of both the micro business environment and the macro environment. If a resource does not allow EnerSys to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for EnerSys.

What are Rare Resources for EnerSys? Defining Rare in VRIO

In an industry that EnerSys operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. EnerSys require rare resources to compete in the industry. If EnerSys don’t have rare resources that are required to succeed in the industry then EnerSys won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide EnerSys competitive advantage against players that don’t have those rare resources. HBR Case Study Solution

What is a Inimitable (Difficult to Immitate) Resource for EnerSys? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to EnerSys 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. EnerSys 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 EnerSys

What is a Organization for EnerSys? Defining Organization in VRIO

Even if the EnerSys 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 EnerSys 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 EnerSys 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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Marketing Expertise within EnerSys	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 EnerSys are often matched by competitors	Yes, EnerSys is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Brand Positioning of EnerSys 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
Distribution and Logistics Costs Competitiveness	Yes, as it helps EnerSys in delivering lower costs	No	Can be imitated by competitors of EnerSys but it is difficult	Yes	Medium to Long Term Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that EnerSys operates in	No, none of the competitors so far has able to imitate this expertise	Yes, EnerSys is successful at it	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for EnerSys - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and EnerSys 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
Customer Community of EnerSys	Yes, as customers are co-creating products	Yes, the EnerSys has able to build a special relationship with its customers	It is very difficult for EnerSys competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on EnerSys customers community ecosystem	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of EnerSys	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by EnerSys organizational structure and capabilities	Keeps the business running
Access to Cheap Capital for EnerSys	Yes, as a leading player in the industry and current macro economic conditions, EnerSys has access to cheap capital	No	Can be imitated by the competitors of EnerSys	Not been totally exploited	Not significant in creating competitive advantage
Alignment of Activities with EnerSys 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
Brand awareness of EnerSys products and services	Yes, the brand awareness of EnerSys products are high	Yes, EnerSys has one of the leading brand in the industry	No	EnerSys has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for EnerSys to thwart competition	Yes, IPR and other rights are rare and competition of EnerSys 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
Global and Local Presence of EnerSys	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of EnerSys but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage

EnerSys 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