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Kemper 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 Kemper to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Kemper? Defining Valuable in VRIO
A resource or capability is considered valuable for Kemper , if it allows the
Kemper to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Kemper to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Kemper.
What are Rare Resources for Kemper? Defining Rare in VRIO
In an industry that Kemper operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Kemper require rare resources to compete in the industry. If Kemper don’t have rare resources that are required to succeed in the industry then Kemper won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Kemper competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Kemper? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Kemper 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. Kemper 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 Kemper
What is a Organization for Kemper? Defining Organization in VRIO
Even if the Kemper 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 Kemper 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 |
---|---|---|---|---|---|
Brand awareness of Kemper products and services | Yes, the brand awareness of Kemper products are high | Yes, Kemper has one of the leading brand in the industry | No | Kemper has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Pricing Strategies of Kemper | Yes, Kemper has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Kemper with a Temporary Competitive Advantage |
Track Record of Leadership Team at Kemper | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Kemper | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Kemper but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at Kemper | Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
Opportunities in the E-Commerce Space for Kemper - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Kemper 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 |
Customer Community of Kemper | Yes, as customers are co-creating products | Yes, the Kemper has able to build a special relationship with its customers | It is very difficult for Kemper competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Kemper customers community ecosystem | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Kemper in delivering lower costs | No | Can be imitated by competitors of Kemper but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Position among Retailers and Wholesalers – Kemper retail strategy | Yes, Kemper has strong relationship with retailers and wholesalers | Yes, Kemper has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Kemper 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 Kemper | To a large extent yes | Providing Strong Competitive Advantage |
Kemper 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 Kemper | Kemper is leveraging the customer loyalty to good effect | Provide Kemper medium term competitive advantage |
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 Kemper operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Kemper is successful at it | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Kemper 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 |
Kemper 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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