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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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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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