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Kirby 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 Kirby to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for Kirby? Defining Valuable in VRIO
A resource or capability is considered valuable for Kirby , if it allows the
Kirby to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow Kirby to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for Kirby.
What are Rare Resources for Kirby? Defining Rare in VRIO
In an industry that Kirby operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. Kirby require rare resources to compete in the industry. If Kirby don’t have rare resources that are required to succeed in the industry then Kirby won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide Kirby competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for Kirby? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to Kirby 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. Kirby 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 Kirby
What is a Organization for Kirby? Defining Organization in VRIO
Even if the Kirby 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 Kirby 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 |
---|---|---|---|---|---|
Brand awareness of Kirby products and services | Yes, the brand awareness of Kirby products are high | Yes, Kirby has one of the leading brand in the industry | No | Kirby has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Ability to Attract Talent in Various Local & Global Markets | Yes, Kirby 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 Kirby | To a large extent yes | Providing Strong Competitive Advantage |
Alignment of Activities with Kirby 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 |
Opportunities in the Adjacent Industries that Kirby 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that Kirby operates in | No, none of the competitors so far has able to imitate this expertise | Yes, Kirby is successful at it | Providing Strong Competitive Advantage |
Distribution and Logistics Costs Competitiveness | Yes, as it helps Kirby in delivering lower costs | No | Can be imitated by competitors of Kirby but it is difficult | Yes | Medium to Long Term Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of Kirby | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Sales Force and Channel Management of Kirby | Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide Kirby sustainable competitive advantage. Potential is certainly there. |
Supply Chain Network Flexibility of Kirby | Yes | Yes | Near competitors also have flexible supply chain and share some of the suppliers | Fully utilized by Kirby organizational structure and capabilities | Keeps the business running |
Product Portfolio and Synergy among Various Product Lines of Kirby | 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 |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with Kirby dominant market position | Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Customer Community of Kirby | Yes, as customers are co-creating products | Yes, the Kirby has able to build a special relationship with its customers | It is very difficult for Kirby competitors to imitate the culture and community dedication | Going by the data, there is still a lot of upside in building on Kirby customers community ecosystem | Providing Strong Competitive Advantage |
Access to Cheap Capital for Kirby | Yes, as a leading player in the industry and current macro economic conditions, Kirby has access to cheap capital | No | Can be imitated by the competitors of Kirby | Not been totally exploited | Not significant in creating competitive advantage |
Global and Local Presence of Kirby | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of Kirby but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Kirby 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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