Edgewell Personal Care 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 Edgewell Personal Care to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Edgewell Personal Care? Defining Valuable in VRIO

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

What are Rare Resources for Edgewell Personal Care? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Edgewell Personal Care? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Edgewell Personal Care 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. Edgewell Personal Care 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 Edgewell Personal Care

What is a Organization for Edgewell Personal Care? Defining Organization in VRIO

Even if the Edgewell Personal Care 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 Edgewell Personal Care 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
Global and Local Presence of Edgewell Personal Care	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Edgewell Personal Care but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that Edgewell Personal Care operates in	No, none of the competitors so far has able to imitate this expertise	Yes, Edgewell Personal Care is successful at it	Providing Strong Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of Edgewell Personal Care	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	Edgewell Personal Care has reasonably sound financial position	Edgewell Personal Care has relatively sustainable Competitive Advantage
Opportunities in the E-Commerce Space for Edgewell Personal Care - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and Edgewell Personal Care 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
Opportunities for Brand Extensions for Edgewell Personal Care 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
Position among Retailers and Wholesalers – Edgewell Personal Care retail strategy	Yes, Edgewell Personal Care has strong relationship with retailers and wholesalers	Yes, Edgewell Personal Care has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage
Brand awareness of Edgewell Personal Care products and services	Yes, the brand awareness of Edgewell Personal Care products are high	Yes, Edgewell Personal Care has one of the leading brand in the industry	No	Edgewell Personal Care has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Vision of the Leadership for Next Set of Challenges	Yes	No	Can't be imitated by competitors of Edgewell Personal Care	Not based on information provided in the case	Can Lead to Strong Competitive Advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Edgewell Personal Care dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of Edgewell Personal Care	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
Customer Community of Edgewell Personal Care	Yes, as customers are co-creating products	Yes, the Edgewell Personal Care has able to build a special relationship with its customers	It is very difficult for Edgewell Personal Care competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Edgewell Personal Care customers community ecosystem	Providing Strong Competitive Advantage
Supply Chain Network Flexibility of Edgewell Personal Care	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Edgewell Personal Care organizational structure and capabilities	Keeps the business running
Distribution and Logistics Costs Competitiveness	Yes, as it helps Edgewell Personal Care in delivering lower costs	No	Can be imitated by competitors of Edgewell Personal Care but it is difficult	Yes	Medium to Long Term Competitive Advantage

Edgewell Personal Care SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

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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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