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General Dynamics 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 Dynamics to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for General Dynamics? Defining Valuable in VRIO
A resource or capability is considered valuable for General Dynamics , if it allows the
General Dynamics 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 Dynamics to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for General Dynamics.
What are Rare Resources for General Dynamics? Defining Rare in VRIO
In an industry that General Dynamics operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. General Dynamics require rare resources to compete in the industry. If General Dynamics don’t have rare resources that are required to succeed in the industry then General Dynamics won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide General Dynamics 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 Dynamics? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to General Dynamics 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 Dynamics 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 Dynamics
What is a Organization for General Dynamics? Defining Organization in VRIO
Even if the General Dynamics 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 Dynamics 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 |
---|---|---|---|---|---|
General Dynamics 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 General Dynamics | General Dynamics is leveraging the customer loyalty to good effect | Provide General Dynamics medium term competitive advantage |
Product Portfolio and Synergy among Various Product Lines of General Dynamics | 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 |
Alignment of Activities with General Dynamics 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 |
Financial Resources of General Dynamics | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | General Dynamics has reasonably sound financial position | General Dynamics has relatively sustainable Competitive Advantage |
Supply Chain Network Flexibility of General Dynamics | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by General Dynamics organizational structure and capabilities | Keeps the business running |
Opportunities for Brand Extensions for General Dynamics 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 |
Position among Retailers and Wholesalers – General Dynamics retail strategy | Yes, General Dynamics has strong relationship with retailers and wholesalers | Yes, General Dynamics has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Opportunities in the Adjacent Industries that General Dynamics 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of General Dynamics | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Successful Implementation of Digital Strategy at General Dynamics | 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 |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Brand awareness of General Dynamics products and services | Yes, the brand awareness of General Dynamics products are high | Yes, General Dynamics has one of the leading brand in the industry | No | General Dynamics has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Global and Local Presence of General Dynamics | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of General Dynamics but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with General Dynamics dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
General Dynamics 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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