Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Ford Motor 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 Ford Motor to do better resource allocation and build a defensible value and supply chain.
Order a Ford Motor VRIO / VRIN Analysis now
What is a Valuable Resource for Ford Motor? Defining Valuable in VRIO
A resource or capability is considered valuable for Ford Motor , if it allows the
Ford Motor to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Ford Motor to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Ford Motor.
What are Rare Resources for Ford Motor? Defining Rare in VRIO
In an industry that Ford Motor operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Ford Motor require rare resources to compete in the industry. If Ford Motor don’t have rare resources that are required to succeed in the industry then Ford Motor won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Ford Motor competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Ford Motor? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Ford Motor 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. Ford Motor 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 Ford Motor
What is a Organization for Ford Motor? Defining Organization in VRIO
Even if the Ford Motor 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 Ford Motor 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 |
---|---|---|---|---|---|
Position among Retailers and Wholesalers – Ford Motor retail strategy | Yes, Ford Motor has strong relationship with retailers and wholesalers | Yes, Ford Motor has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Ford Motor | 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 |
Product Portfolio and Synergy among Various Product Lines of Ford Motor | 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Ford Motor | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Access to Cheap Capital for Ford Motor | Yes, as a leading player in the industry and current macro economic conditions, Ford Motor has access to cheap capital | No | Can be imitated by the competitors of Ford Motor | Not been totally exploited | Not significant in creating competitive advantage |
Financial Resources of Ford Motor | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | Ford Motor has reasonably sound financial position | Ford Motor has relatively sustainable Competitive Advantage |
Ford Motor 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 Ford Motor | Ford Motor is leveraging the customer loyalty to good effect | Provide Ford Motor medium term competitive advantage |
Marketing Expertise within Ford Motor | Yes, firms are competing based on differentiation in the industry | No, as most of the competitors also have good marketing departments and expertise | Pricing strategies of Ford Motor are often matched by competitors | Yes, Ford Motor is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Ford Motor dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Ford Motor to thwart competition | Yes, IPR and other rights are rare and competition of Ford Motor 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, Ford Motor 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 Ford Motor | To a large extent yes | Providing Strong Competitive Advantage |
Pricing Strategies of Ford Motor | Yes, Ford Motor has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Ford Motor with a Temporary Competitive Advantage |
Opportunities in the E-Commerce Space for Ford Motor - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Ford Motor 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Ford Motor operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Ford Motor is successful at it | Providing Strong Competitive Advantage |
Ford Motor 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
MBA Admission help, MBA Assignment Help, MBA Case Study Help, Online Analytics Live Classes
Order Now
Previous VRIO / VRIN Analysis
- General Motors VRIO / VRIN Analysis
- CVS Health VRIO / VRIN Analysis
- UnitedHealth Group VRIO / VRIN Analysis
- McKesson VRIO / VRIN Analysis
- Berkshire Hathaway VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- AT&T VRIO / VRIN Analysis
- General Electric VRIO / VRIN Analysis
- AmerisourceBergen VRIO / VRIN Analysis
- Verizon VRIO / VRIN Analysis
- Chevron VRIO / VRIN Analysis