Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Nike 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 Nike to do better resource allocation and build a defensible value and supply chain.
Order a Nike VRIO / VRIN Analysis now
What is a Valuable Resource for Nike? Defining Valuable in VRIO
A resource or capability is considered valuable for Nike , if it allows the
Nike to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Nike to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Nike.
What are Rare Resources for Nike? Defining Rare in VRIO
In an industry that Nike operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Nike require rare resources to compete in the industry. If Nike don’t have rare resources that are required to succeed in the industry then Nike won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Nike competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Nike? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Nike 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. Nike 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 Nike
What is a Organization for Nike? Defining Organization in VRIO
Even if the Nike 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 Nike 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 Nike | 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 |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Nike in delivering lower costs | No | Can be imitated by competitors of Nike but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Marketing Expertise within Nike | 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 Nike are often matched by competitors | Yes, Nike is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Global and Local Presence of Nike | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Nike but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Pricing Strategies of Nike | Yes, Nike has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Nike with a Temporary Competitive Advantage |
Track Record of Leadership Team at Nike | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Nike 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 Nike | Nike is leveraging the customer loyalty to good effect | Provide Nike medium term competitive advantage |
Successful Implementation of Digital Strategy at Nike | 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 |
Opportunities for Brand Extensions for Nike 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Nike | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Customer Community of Nike | Yes, as customers are co-creating products | Yes, the Nike has able to build a special relationship with its customers | It is very difficult for Nike competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Nike customers community ecosystem | 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 Nike operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Nike is successful at it | Providing Strong Competitive Advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Nike dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Position among Retailers and Wholesalers – Nike retail strategy | Yes, Nike has strong relationship with retailers and wholesalers | Yes, Nike has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Nike 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
- ConocoPhillips VRIO / VRIN Analysis
- TJX VRIO / VRIN Analysis
- General Dynamics VRIO / VRIN Analysis
- Publix Super Markets VRIO / VRIN Analysis
- Gilead Sciences VRIO / VRIN Analysis
Next 5 VRIO / VRIN Analysis
- World Fuel Services VRIO / VRIN Analysis
- 3M VRIO / VRIN Analysis
- Mondelez International VRIO / VRIN Analysis
- Exelon VRIO / VRIN Analysis
- Twenty-First Century Fox VRIO / VRIN Analysis