General Growth Properties 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 General Growth Properties to do better resource allocation and build a defensible value and supply chain.

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VRIO / VRIN Analysis

What is a Valuable Resource for General Growth Properties? Defining Valuable in VRIO


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

What are Rare Resources for General Growth Properties? Defining Rare in VRIO


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

What is a Inimitable (Difficult to Immitate) Resource for General Growth Properties? Defining Inimitable in VRIO


A valuable and rare resource can provide a competitive advantage to General Growth Properties 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. General Growth Properties 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 General Growth Properties

What is a Organization for General Growth Properties? Defining Organization in VRIO


Even if the General Growth Properties 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 General Growth Properties 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
Intellectual Property Rights, Copyrights, and Trademarks Yes, they are extremely valuable for General Growth Properties to thwart competition Yes, IPR and other rights are rare and competition of General Growth Properties 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
Distribution and Logistics Costs Competitiveness Yes, as it helps General Growth Properties in delivering lower costs No Can be imitated by competitors of General Growth Properties but it is difficult Yes Medium to Long Term Competitive Advantage
Sales Force and Channel Management of General Growth Properties Yes No Can be imitated by competitors Still there is lot of potential to utilize the excellent sales force Can provide General Growth Properties sustainable competitive advantage. Potential is certainly there.
Opportunities in the Adjacent Industries that General Growth Properties 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
Alignment of Activities with General Growth Properties 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
Position among Retailers and Wholesalers – General Growth Properties retail strategy Yes, General Growth Properties has strong relationship with retailers and wholesalers Yes, General Growth Properties has dedicated channel partners Difficult to imitate though not impossible Yes, over the years company has used it successfully Sustainable Competitive Advantage
Opportunities for Brand Extensions for General Growth Properties 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
Access to Cheap Capital for General Growth Properties Yes, as a leading player in the industry and current macro economic conditions, General Growth Properties has access to cheap capital No Can be imitated by the competitors of General Growth Properties Not been totally exploited Not significant in creating competitive advantage
Customer Community of General Growth Properties Yes, as customers are co-creating products Yes, the General Growth Properties has able to build a special relationship with its customers It is very difficult for General Growth Properties competitors to imitate the culture and community dedication Going by the data, there is still a lot of upside in building on General Growth Properties customers community ecosystem Providing Strong Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets Yes, General Growth Properties 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 General Growth Properties To a large extent yes Providing Strong Competitive Advantage
Vision of the Leadership for Next Set of Challenges Yes No Can't be imitated by competitors of General Growth Properties Not based on information provided in the case Can Lead to Strong Competitive Advantage
Pricing Strategies of General Growth Properties Yes, General Growth Properties has sound pricing strategies No Pricing strategies are regularly imitated in the industry Yes, firm has a pricing analytics engine It can only provide General Growth Properties with a Temporary Competitive Advantage
Financial Resources of General Growth Properties Yes No Financial instruments and market liquidity are available to all the nearest competitors General Growth Properties has reasonably sound financial position General Growth Properties has relatively sustainable Competitive Advantage
Global and Local Presence of General Growth Properties Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles Yes Can be imitated by competitors of General Growth Properties but at a relatively high cost Yes, it is one of the most diversified companies in its industry Providing Strong Competitive Advantage


General Growth Properties 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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