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Belden 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 Belden to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Belden? Defining Valuable in VRIO
A resource or capability is considered valuable for Belden , if it allows the
Belden to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Belden to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Belden.
What are Rare Resources for Belden? Defining Rare in VRIO
In an industry that Belden operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Belden require rare resources to compete in the industry. If Belden don’t have rare resources that are required to succeed in the industry then Belden won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Belden competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Belden? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Belden 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. Belden 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 Belden
What is a Organization for Belden? Defining Organization in VRIO
Even if the Belden 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 Belden 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 Belden products and services | Yes, the brand awareness of Belden products are high | Yes, Belden has one of the leading brand in the industry | No | Belden has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of Belden | 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 |
Financial Resources of Belden | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Belden has reasonably sound financial position | Belden has relatively sustainable Competitive Advantage |
Global and Local Presence of Belden | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Belden but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for Belden 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 |
Supply Chain Network Flexibility of Belden | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Belden organizational structure and capabilities | Keeps the business running |
Sales Force and Channel Management of Belden | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Belden sustainable competitive advantage. Potential is certainly there. |
Opportunities in the Adjacent Industries that Belden 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 |
Successful Implementation of Digital Strategy at Belden | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Belden 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 Belden | 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 Belden operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Belden is successful at it | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Belden | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Cheap Capital for Belden | Yes, as a leading player in the industry and current macro economic conditions, Belden has access to cheap capital | No | Can be imitated by the competitors of Belden | Not been totally exploited | Not significant in creating competitive advantage |
Belden 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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