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Akamai Technologies 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 Akamai Technologies to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Akamai Technologies? Defining Valuable in VRIO
A resource or capability is considered valuable for Akamai Technologies , if it allows the
Akamai Technologies to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Akamai Technologies to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Akamai Technologies.
What are Rare Resources for Akamai Technologies? Defining Rare in VRIO
In an industry that Akamai Technologies operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Akamai Technologies require rare resources to compete in the industry. If Akamai Technologies don’t have rare resources that are required to succeed in the industry then Akamai Technologies won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Akamai Technologies competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Akamai Technologies? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Akamai Technologies 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. Akamai Technologies 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 Akamai Technologies
What is a Organization for Akamai Technologies? Defining Organization in VRIO
Even if the Akamai Technologies 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 Akamai Technologies 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 |
---|---|---|---|---|---|
Ability to Attract Talent in Various Local & Global Markets | Yes, Akamai Technologies 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 Akamai Technologies | To a large extent yes | Providing Strong Competitive Advantage |
Supply Chain Network Flexibility of Akamai Technologies | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Akamai Technologies organizational structure and capabilities | Keeps the business running |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Akamai Technologies dominant market position | Can be imitated by competitors | Yes | Providing 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 Akamai Technologies operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Akamai Technologies is successful at it | Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for Akamai Technologies - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and Akamai Technologies 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 |
Access to Cheap Capital for Akamai Technologies | Yes, as a leading player in the industry and current macro economic conditions, Akamai Technologies has access to cheap capital | No | Can be imitated by the competitors of Akamai Technologies | Not been totally exploited | Not significant in creating competitive advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Akamai Technologies in delivering lower costs | No | Can be imitated by competitors of Akamai Technologies but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Opportunities in the Adjacent Industries that Akamai Technologies 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 Akamai Technologies | 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 |
Global and Local Presence of Akamai Technologies | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Akamai Technologies 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 Leadership Team at Akamai Technologies | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Sales Force and Channel Management of Akamai Technologies | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Akamai Technologies sustainable competitive advantage. Potential is certainly there. |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for Akamai Technologies to thwart competition | Yes, IPR and other rights are rare and competition of Akamai Technologies 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 |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Akamai Technologies | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Akamai Technologies 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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