Parexel International 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 Parexel International to do better resource allocation and build a defensible value and supply chain.

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What is a Valuable Resource for Parexel International? Defining Valuable in VRIO

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

What are Rare Resources for Parexel International? Defining Rare in VRIO

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

What is a Inimitable (Difficult to Immitate) Resource for Parexel International? Defining Inimitable in VRIO

A valuable and rare resource can provide a competitive advantage to Parexel International 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. Parexel International 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 Parexel International

What is a Organization for Parexel International? Defining Organization in VRIO

Even if the Parexel International 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 Parexel International 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
Product Portfolio and Synergy among Various Product Lines of Parexel International	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 Parexel International	Yes	No	Can be imitated by competitors	Still there is lot of potential to utilize the excellent sales force	Can provide Parexel International sustainable competitive advantage. Potential is certainly there.
Alignment of Activities with Parexel International 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
Customer Community of Parexel International	Yes, as customers are co-creating products	Yes, the Parexel International has able to build a special relationship with its customers	It is very difficult for Parexel International competitors to imitate the culture and community dedication	Going by the data, there is still a lot of upside in building on Parexel International customers community ecosystem	Providing Strong Competitive Advantage
Brand Positioning of Parexel International 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
Pricing Strategies of Parexel International	Yes, Parexel International has sound pricing strategies	No	Pricing strategies are regularly imitated in the industry	Yes, firm has a pricing analytics engine	It can only provide Parexel International with a Temporary Competitive Advantage
Global and Local Presence of Parexel International	Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles	Yes	Can be imitated by competitors of Parexel International but at a relatively high cost	Yes, it is one of the most diversified companies in its industry	Providing Strong Competitive Advantage
Parexel International 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 Parexel International	Parexel International is leveraging the customer loyalty to good effect	Provide Parexel International medium term competitive advantage
Supply Chain Network Flexibility of Parexel International	Yes	Yes	Near competitors also have flexible supply chain and share some of the suppliers	Fully utilized by Parexel International organizational structure and capabilities	Keeps the business running
Opportunities for Brand Extensions for Parexel International 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
Track Record of Leadership Team at Parexel International	Yes	Yes	Can't be imitated by competitors	Yes	Providing Strong Competitive Advantage
Intellectual Property Rights, Copyrights, and Trademarks	Yes, they are extremely valuable for Parexel International to thwart competition	Yes, IPR and other rights are rare and competition of Parexel International 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
Access to Cheap Capital for Parexel International	Yes, as a leading player in the industry and current macro economic conditions, Parexel International has access to cheap capital	No	Can be imitated by the competitors of Parexel International	Not been totally exploited	Not significant in creating competitive advantage
Access to Critical Raw Material for Successful Execution	Yes	Yes, as other competitors have to come to terms with Parexel International dominant market position	Can be imitated by competitors	Yes	Providing Sustainable Competitive Advantage

Parexel International 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