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inVentiv Health 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 inVentiv Health to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for inVentiv Health? Defining Valuable in VRIO
A resource or capability is considered valuable for inVentiv Health , if it allows the
inVentiv Health to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow inVentiv Health to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for inVentiv Health.
What are Rare Resources for inVentiv Health? Defining Rare in VRIO
In an industry that inVentiv Health operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. inVentiv Health require rare resources to compete in the industry. If inVentiv Health don’t have rare resources that are required to succeed in the industry then inVentiv Health won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide inVentiv Health competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for inVentiv Health? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to inVentiv Health 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. inVentiv Health 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 inVentiv Health
What is a Organization for inVentiv Health? Defining Organization in VRIO
Even if the inVentiv Health 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 inVentiv Health 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 |
---|---|---|---|---|---|
Alignment of Activities with inVentiv Health 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 |
Opportunities in the Adjacent Industries that inVentiv Health 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps inVentiv Health in delivering lower costs | No | Can be imitated by competitors of inVentiv Health but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of inVentiv Health | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, inVentiv Health 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 inVentiv Health | To a large extent yes | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – inVentiv Health retail strategy | Yes, inVentiv Health has strong relationship with retailers and wholesalers | Yes, inVentiv Health has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Track Record of Leadership Team at inVentiv Health | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
inVentiv Health 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 inVentiv Health | inVentiv Health is leveraging the customer loyalty to good effect | Provide inVentiv Health medium term competitive advantage |
Global and Local Presence of inVentiv Health | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of inVentiv Health 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 Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that inVentiv Health operates in | No, none of the competitors so far has able to imitate this expertise | Yes, inVentiv Health is successful at it | Providing Strong Competitive Advantage |
Brand Positioning of inVentiv Health 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 |
Financial Resources of inVentiv Health | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | inVentiv Health has reasonably sound financial position | inVentiv Health has relatively sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at inVentiv Health | 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 |
Access to Cheap Capital for inVentiv Health | Yes, as a leading player in the industry and current macro economic conditions, inVentiv Health has access to cheap capital | No | Can be imitated by the competitors of inVentiv Health | Not been totally exploited | Not significant in creating competitive advantage |
inVentiv Health 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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