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

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What is a Valuable Resource for SPX FLOW? Defining Valuable in VRIO

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

What are Rare Resources for SPX FLOW? Defining Rare in VRIO

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

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

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

What is a Organization for SPX FLOW? Defining Organization in VRIO

Even if the SPX FLOW 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 SPX FLOW 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 SPX FLOW to thwart competition	Yes, IPR and other rights are rare and competition of SPX FLOW 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
Opportunities for Brand Extensions for SPX FLOW 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
Product Portfolio and Synergy among Various Product Lines of SPX FLOW	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
Sales Force and Channel Management of SPX FLOW	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide SPX FLOW sustainable competitive advantage. Potential is certainly there.
Brand awareness of SPX FLOW products and services	Yes, the brand awareness of SPX FLOW products are high	Yes, SPX FLOW has one of the leading brand in the industry	No	SPX FLOW has utilized its leading brand position in various segments	Sustainable Competitive Advantage
Talent to Manage Regulatory and Legal Obligations	Yes	No	Can be imitated by competitors	Yes	Not critical factor
Financial Resources of SPX FLOW	Yes	No	Financial instruments and market liquidity are available to all the nearest competitors	SPX FLOW has reasonably sound financial position	SPX FLOW has relatively sustainable Competitive Advantage
Ability to Attract Talent in Various Local & Global Markets	Yes, SPX FLOW 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 SPX FLOW	To a large extent yes	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 SPX FLOW operates in	No, none of the competitors so far has able to imitate this expertise	Yes, SPX FLOW is successful at it	Providing Strong Competitive Advantage
Global and Local Presence of SPX FLOW	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of SPX FLOW 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 Leadership Team at SPX FLOW	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Pricing Strategies of SPX FLOW	Yes, SPX FLOW has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide SPX FLOW with a Temporary Competitive Advantage
Marketing Expertise within SPX FLOW	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 SPX FLOW are often matched by competitors	Yes, SPX FLOW is leveraging both its inhouse marketing department and external expertise	Temporary Competitive Advantage
Position among Retailers and Wholesalers – SPX FLOW retail strategy	Yes, SPX FLOW has strong relationship with retailers and wholesalers	Yes, SPX FLOW has dedicated channel partners	Difficult to imitate though not impossible	Yes, over the years company has used it successfully	Sustainable Competitive Advantage

SPX FLOW 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