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Carpenter Technology 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 Carpenter Technology to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Carpenter Technology? Defining Valuable in VRIO
A resource or capability is considered valuable for Carpenter Technology , if it allows the
Carpenter Technology to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Carpenter Technology to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Carpenter Technology.
What are Rare Resources for Carpenter Technology? Defining Rare in VRIO
In an industry that Carpenter Technology operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Carpenter Technology require rare resources to compete in the industry. If Carpenter Technology don’t have rare resources that are required to succeed in the industry then Carpenter Technology won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Carpenter Technology competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Carpenter Technology? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Carpenter Technology 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. Carpenter Technology 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 Carpenter Technology
What is a Organization for Carpenter Technology? Defining Organization in VRIO
Even if the Carpenter Technology 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 Carpenter Technology 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 |
---|---|---|---|---|---|
Sales Force and Channel Management of Carpenter Technology | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Carpenter Technology sustainable competitive advantage. Potential is certainly there. |
Brand awareness of Carpenter Technology products and services | Yes, the brand awareness of Carpenter Technology products are high | Yes, Carpenter Technology has one of the leading brand in the industry | No | Carpenter Technology has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Marketing Expertise within Carpenter Technology | 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 Carpenter Technology are often matched by competitors | Yes, Carpenter Technology 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 Carpenter Technology dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Successful Implementation of Digital Strategy at Carpenter Technology | 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 |
Brand Positioning of Carpenter Technology 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 |
Track Record of Leadership Team at Carpenter Technology | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Global and Local Presence of Carpenter Technology | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Carpenter Technology but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Ability to Attract Talent in Various Local & Global Markets | Yes, Carpenter Technology 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 Carpenter Technology | To a large extent yes | Providing Strong Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Carpenter Technology | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Pricing Strategies of Carpenter Technology | Yes, Carpenter Technology has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide Carpenter Technology with a Temporary Competitive Advantage |
Position among Retailers and Wholesalers – Carpenter Technology retail strategy | Yes, Carpenter Technology has strong relationship with retailers and wholesalers | Yes, Carpenter Technology 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 Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Carpenter Technology operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Carpenter Technology is successful at it | Providing Strong Competitive Advantage |
Carpenter Technology 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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