TRI Pointe Group 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 TRI Pointe Group to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for TRI Pointe Group? Defining Valuable in VRIO

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

What are Rare Resources for TRI Pointe Group? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for TRI Pointe Group? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to TRI Pointe Group 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. TRI Pointe Group 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 TRI Pointe Group

What is a Organization for TRI Pointe Group? Defining Organization in VRIO

Even if the TRI Pointe Group 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 TRI Pointe Group 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
Marketing Expertise within TRI Pointe Group	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 TRI Pointe Group are often matched by competitors	Yes, TRI Pointe Group 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 TRI Pointe Group dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage
Global and Local Presence of TRI Pointe Group	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of TRI Pointe Group but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Opportunities in the E-Commerce Space for TRI Pointe Group - using Present IT Capabilities	Yes, the e-commerce space is rapidly growing and TRI Pointe Group 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
Alignment of Activities with TRI Pointe Group 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 Positioning of TRI Pointe Group 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
TRI Pointe Group Customer Network and Loyalty	Yes, 23% of the customers contribute to more than 84% of the sales revenue	Yes, firm has invested to build a strong customer loyalty	Has been tried by competitors but none of them are as successful as TRI Pointe Group	TRI Pointe Group is leveraging the customer loyalty to good effect	Provide TRI Pointe Group medium term competitive advantage
Brand awareness of TRI Pointe Group products and services	Yes, the brand awareness of TRI Pointe Group products are high	Yes, TRI Pointe Group has one of the leading brand in the industry	No	TRI Pointe Group has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Product Portfolio and Synergy among Various Product Lines of TRI Pointe Group	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
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Track Record of Project Execution	Yes, especially in an industry where there are frequent cost overun	Yes, especially in the segment that TRI Pointe Group operates in	No, none of the competitors so far has able to imitate this expertise	Yes, TRI Pointe Group is successful at it	Providing Strong Competitive Advantage
Customer Community of TRI Pointe Group	Yes, as customers are co-creating products	Yes, the TRI Pointe Group has able to build a special relationship with its customers	It is very difficult for TRI Pointe Group competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on TRI Pointe Group customers community ecosystem	Providing Strong Competitive Advantage
Distribution and Logistics Costs Competitiveness	Yes, as it helps TRI Pointe Group in delivering lower costs	No	Can be imitated by competitors of TRI Pointe Group but it is difficult	Yes	Medium to Long Term Competitive Advantage
Opportunities in the Adjacent Industries that TRI Pointe Group 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

TRI Pointe Group 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