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OGE Energy 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 OGE Energy to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for OGE Energy? Defining Valuable in VRIO
A resource or capability is considered valuable for OGE Energy , if it allows the
OGE Energy to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow OGE Energy to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for OGE Energy.
What are Rare Resources for OGE Energy? Defining Rare in VRIO
In an industry that OGE Energy operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. OGE Energy require rare resources to compete in the industry. If OGE Energy don’t have rare resources that are required to succeed in the industry then OGE Energy won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide OGE Energy competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for OGE Energy? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to OGE Energy 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. OGE Energy 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 OGE Energy
What is a Organization for OGE Energy? Defining Organization in VRIO
Even if the OGE Energy 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 OGE Energy 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 |
---|---|---|---|---|---|
Alignment of Activities with OGE Energy Corporate Strategy | Yes | No | Each of the firm has its own strategy | Yes, company has organizational skills to extract the maximum out of it. | Still lots of potential to build on it |
Distribution and Logistics Costs Competitiveness | Yes, as it helps OGE Energy in delivering lower costs | No | Can be imitated by competitors of OGE Energy but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Pricing Strategies of OGE Energy | Yes, OGE Energy has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide OGE Energy with a Temporary Competitive Advantage |
Marketing Expertise within OGE Energy | 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 OGE Energy are often matched by competitors | Yes, OGE Energy is leveraging both its inhouse marketing department and external expertise | Temporary Competitive Advantage |
Brand awareness of OGE Energy products and services | Yes, the brand awareness of OGE Energy products are high | Yes, OGE Energy has one of the leading brand in the industry | No | OGE Energy has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Brand Positioning of OGE Energy 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 |
OGE Energy 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 OGE Energy | OGE Energy is leveraging the customer loyalty to good effect | Provide OGE Energy medium term competitive advantage |
Opportunities in the E-Commerce Space for OGE Energy - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and OGE Energy 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 |
Product Portfolio and Synergy among Various Product Lines of OGE Energy | 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 |
Ability to Attract Talent in Various Local & Global Markets | Yes, OGE Energy 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 OGE Energy | To a large extent yes | Providing Strong Competitive Advantage |
Successful Implementation of Digital Strategy at OGE Energy | 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for OGE Energy to thwart competition | Yes, IPR and other rights are rare and competition of OGE Energy 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 |
Customer Community of OGE Energy | Yes, as customers are co-creating products | Yes, the OGE Energy has able to build a special relationship with its customers | It is very difficult for OGE Energy competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on OGE Energy customers community ecosystem | Providing Strong Competitive Advantage |
Opportunities for Brand Extensions for OGE Energy 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 |
OGE Energy 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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