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VCA 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 VCA to do better resource allocation and build a defensible value and supply chain.
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What is a Valuable Resource for VCA? Defining Valuable in VRIO
A resource or capability is considered valuable for VCA , if it allows the
VCA to exploit opportunities or negate threats
emerging out of both the micro business environment and the macro environment. If a resource does not allow VCA to minimize threats or exploit opportunities, than it doesn't contribute signficantly to building a sustainable competitive advantage for VCA.
What are Rare Resources for VCA? Defining Rare in VRIO
In an industry that VCA operates in, valuable resources are held by number of competitors. So valuable resources themselves don’t provide a sustainable competitive advantage. VCA require rare resources to compete in the industry. If VCA don’t have rare resources that are required to succeed in the industry then VCA won’t be able to compete successfully in the marketplace. Secondly holding rare resources can provide VCA competitive advantage against players that don’t have those rare resources. HBR Case Study Solution
What is a Inimitable (Difficult to Immitate) Resource for VCA? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to VCA 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. VCA 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 VCA
What is a Organization for VCA? Defining Organization in VRIO
Even if the VCA 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 VCA 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 |
---|---|---|---|---|---|
Financial Resources of VCA | Yes | No | Financial instruments and market liquidity are available to all the nearest competitors | VCA has reasonably sound financial position | VCA has relatively sustainable Competitive Advantage |
Brand awareness of VCA products and services | Yes, the brand awareness of VCA products are high | Yes, VCA has one of the leading brand in the industry | No | VCA has utilized its leading brand position in various segments | Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of VCA | Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
Opportunities in the E-Commerce Space for VCA - using Present IT Capabilities | Yes, the e-commerce space is rapidly growing and VCA 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 |
Global and Local Presence of VCA | Yes, as it diversify the revenue streams and isolate company's balance sheet from economic cycles | Yes | Can be imitated by competitors of VCA but at a relatively high cost | Yes, it is one of the most diversified companies in its industry | Providing Strong Competitive Advantage |
Position among Retailers and Wholesalers – VCA retail strategy | Yes, VCA has strong relationship with retailers and wholesalers | Yes, VCA has dedicated channel partners | Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of VCA | 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 |
Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable for VCA to thwart competition | Yes, IPR and other rights are rare and competition of VCA 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 |
Track Record of Project Execution | Yes, especially in an industry where there are frequent cost overun | Yes, especially in the segment that VCA operates in | No, none of the competitors so far has able to imitate this expertise | Yes, VCA is successful at it | Providing Strong Competitive Advantage |
VCA 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 VCA | VCA is leveraging the customer loyalty to good effect | Provide VCA medium term competitive advantage |
Track Record of Leadership Team at VCA | Yes | Yes | Can't be imitated by competitors | Yes | Providing Strong Competitive Advantage |
Pricing Strategies of VCA | Yes, VCA has sound pricing strategies | No | Pricing strategies are regularly imitated in the industry | Yes, firm has a pricing analytics engine | It can only provide VCA with a Temporary Competitive Advantage |
Opportunities in the Adjacent Industries that VCA 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 |
Brand Positioning of VCA 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 |
VCA 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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